Hi,
I have good funds left in my consultancy Ltd that I want to use to fund a buy to let or two. My preferred approach is to set up another Ltd company to purchase and let the properties through and to fund the deposits I want my consultancy Ltd to loan the property Ltd the cash required.
Passed this by my accountant who said as long as the loan terms are formalised this is acceptable.
Difficulty comes with the mortgage companies who could see this as an unaccetpable way of raising the deposits.
So, anyone got other ideas of how to use money in contracting Ltd to fund buy to lets without taking the cash out as a dividend and getting hit at 40% tax?
I have good funds left in my consultancy Ltd that I want to use to fund a buy to let or two. My preferred approach is to set up another Ltd company to purchase and let the properties through and to fund the deposits I want my consultancy Ltd to loan the property Ltd the cash required.
Passed this by my accountant who said as long as the loan terms are formalised this is acceptable.
Difficulty comes with the mortgage companies who could see this as an unaccetpable way of raising the deposits.
So, anyone got other ideas of how to use money in contracting Ltd to fund buy to lets without taking the cash out as a dividend and getting hit at 40% tax?
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