Last time I read any posts about "should I own my BTL personally or through a company" the advice was that owning personally was better. Is this still expected to be the case entering 2016?
But regardless, what are the rules/issues if one did want to move a personal rental property into their Ltd?
We started renting our first house out (cost ~£60k) in 2010 as we wanted to move and didn't want to wait to find a buyer. We have an interest-only mortgage at ~1% so haven't been paying it off - it's a residential mortgage with a clause that allows renting, not a BTL mortgage. It strikes me that taking £60k out of my Ltd to pay off the mortgage would take some years if we want to avoid paying a lot of tax, and wondered about the possibility of MyCo buying the property (for cash so that there's no mortgage to consider).
Does this make any sense, and is it relatively straightforward or would I run into a whole mess of legal issues around things like the sale price, etc? Are there any substantial advantages or disadvantages to doing it?
But regardless, what are the rules/issues if one did want to move a personal rental property into their Ltd?
We started renting our first house out (cost ~£60k) in 2010 as we wanted to move and didn't want to wait to find a buyer. We have an interest-only mortgage at ~1% so haven't been paying it off - it's a residential mortgage with a clause that allows renting, not a BTL mortgage. It strikes me that taking £60k out of my Ltd to pay off the mortgage would take some years if we want to avoid paying a lot of tax, and wondered about the possibility of MyCo buying the property (for cash so that there's no mortgage to consider).
Does this make any sense, and is it relatively straightforward or would I run into a whole mess of legal issues around things like the sale price, etc? Are there any substantial advantages or disadvantages to doing it?
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