Purchasing already owned buy-to-let flats through contracting Ltd

[WordIsBond]

Some contractors are pretty well up to speed on accounting issues related to contracting, but this is more related to BTL accounting, and I'm not sure asking in a contractors forum is asking in the right place.

But I suggest you re-read Philip's comment, because your response to it totally missed the point he was making. He wasn't talking about CGT now when you sell to your company, he was talking about CGT later when your company sells those properties.

[unixman]

Personally speaking, I wouldn't. You would be using your Ltd other than for the purpose it was founded. Unless your articles of association mention property dealing. You would also be doing so simply in order to avoid/evoid/evade taxes. A large risk and perhaps legally dubious. Probably, there other landlords who have considered the same thing, what do they say on the BTL forums? What are the big landlords doing? What does your accountant say?

NB. Not sure about the plan to expand to 10 properties either. We are due a big house price crash. Although it is hard to see how that can happen, with a loan-to-mortgage of 75% you could end up doo-doo if prices halved overnight. Personally I would work in getting the LTM ratio down. Appreciate that just reflects my low risk behavior, ymmv.

[ASB]

If mixing the businesses consider potential impacts.

e.g. the cobtracting business gets sued, you have to sell the property to fund it. There are valid considerations both ways related to liability issues.

I found this informative a few years ago; I assume it will be due another update soon. Covers some of the impacts from both sides. Company ownership can be justified under some circumstances, and the OP's stated intent could well be one of them. It also rather depends upon their potential exit strategy.

Property Company Tax Advice Guide

[stek]

Personally speaking, I wouldn't. You would be using your Ltd other than for the purpose it was founded. Unless your articles of association mention property dealing.

What about the independent objects clause?

[unixman]

What about the independent objects clause?

Tell it to the judge, sonny.

[castoff101]

Stamp duty - nearly all of my buy to lets are 100-150k, so stamp duty will be nominal or zero.

There is also this thing about linked purchases, I fell into this when I was buying in four separate properties from my ex business partner...

https://www.gov.uk/guidance/sdlt-lin...s-or-transfers