I know many here have property as a side hustle so I was hoping to seek some advice on whether my thinking is straight
Facts:
Passive income of 50k so already a higher rate tax payer
Btl already owned which being in 22k a year
No mortgage
No capital gains
Single no wife
Leave in personal name:
I continue to pay 40% on the 22k income (I know service charge and repairs are deducted but these are tiny and sel managed)
Move to ltd
Pay stamp duty 15k
Pay only 19% corp tax so save 4K a year in tax
However the ltd route only covers getting it into the ltd wrapped. If I actually want to take out the income cash into my personal name I have to pay dividend tax or take it out as a salary and national insurance
My question:
Does moving the property from personal to ltd actually save any tax?! Before I thought it was obviously yes
After running the numbers in a spreadsheet I don’t think that’s true anymore
Facts:
Passive income of 50k so already a higher rate tax payer
Btl already owned which being in 22k a year
No mortgage
No capital gains
Single no wife
Leave in personal name:
I continue to pay 40% on the 22k income (I know service charge and repairs are deducted but these are tiny and sel managed)
Move to ltd
Pay stamp duty 15k
Pay only 19% corp tax so save 4K a year in tax
However the ltd route only covers getting it into the ltd wrapped. If I actually want to take out the income cash into my personal name I have to pay dividend tax or take it out as a salary and national insurance
My question:
Does moving the property from personal to ltd actually save any tax?! Before I thought it was obviously yes
After running the numbers in a spreadsheet I don’t think that’s true anymore
Comment