Holding company for multiple businesses

[BigLadFromBeeston666]

I'm awaiting a reply from my accountant on this. Wanted to get some expert experience shared, pick the collective brains of the forum.

Have you opted for a holding company structure for your businesses? What has your experience been in terms of efficiency, ease of moving money between companies, cost? If you could go back in time, would you do anything different about how you've structured it?

I'm starting a joint venture with a few friends which will be a trading limited company. The structure will likely look like this:

• Holding company
  • Consultancy company (I own)
  • Joint venture w/ 2 other directors (my share is owned by my Holding Company)
  • BTL investment SPV (next year; owned by my Holding Company 100%)

I'm early on in my researching of it all so any advice / suggestions / scorn, grately received!

[Bodger]

BTL investment SPV (next year; owned by my Holding Company 100%)

I was doing some reading earlier in the year on structuring of BTL properties and Holiday lets in LTD, and I seem to recall that a lot of holiday let / BTL lenders specify that layering of companies is not allowed for their mortgages. It must be wholly owned by the directors, not by another company.

Obviously do your own research, but be aware this may be a thing.

[eek]

I was doing some reading earlier in the year on structuring of BTL properties and Holiday lets in LTD, and I seem to recall that a lot of holiday let / BTL lenders specify that layering of companies is not allowed for their mortgages. It must be wholly owned by the directors, not by another company.

Obviously do your own research, but be aware this may be a thing.

Oh it will be.

Also, I would be very surprised if we don't at some point see a realignment of how loans on residential properties are taxed. That may mean the re-introduction of MIRAS for owner occupiers it may however mean the removal of all tax relief on btl mortgages.

[TheGreenBastard]

I was doing some reading earlier in the year on structuring of BTL properties and Holiday lets in LTD, and I seem to recall that a lot of holiday let / BTL lenders specify that layering of companies is not allowed for their mortgages. It must be wholly owned by the directors, not by another company.

Obviously do your own research, but be aware this may be a thing.

Layering is supported by some popular lenders, I do this via Aldermore - it does require high % ownership by yourself through the layering structure though. However, general appetite for BTL lending has gone down the drain and mortgage rates are eye watering right now.