Buy to let property - can I put it under my company's accounts ?

[Clare@InTouch]

Could I get a response on the below please? Is it that simple?

You'd have to sell the existing property to the company, so you'd still have stamp duty and legal fees there.

You could then buy future property in that new company, but you would need to consider whether you could get a commercial mortgage on them through a company. Or if buying from existing funds you may want to consider making one company a shareholder in the other so you could transfer money across.

If you own two companies they would be under common control, and that could have a knock on effect on CT and VAT for both of them.

It's not quite as simple as it seems, you need to talk to an accountant first to ensure it's set up correctly.

[kesm]

Could I get a response on the below please? Is it that simple?

I have been mulling over a similar idea for an effective pension:

run my existing ltd as is, ie for salary & divs purposes.

set up a property management ltd and buy my existing buy-to-let.

buy more flats with the new ltd and put ALL of the profit into a pension scheme, thus incurring no extra CT, salary, divs headaches.

It is that simple, isn't it? It is. Definitely.

[JRCT]

I have been mulling over a similar idea for an effective pension:

run my existing ltd as is, ie for salary & divs purposes.

set up a property management ltd and buy my existing buy-to-let.

buy more flats with the new ltd and put ALL of the profit into a pension scheme, thus incurring no extra CT, salary, divs headaches.

It is that simple, isn't it? It is. Definitely.

[Jeebo72]

The other important thing is why in hell would you actually WANT to do this?

.

The best way is to set up another business and loan the money to it to buy property. And there is a lot of very good reasons to do this. Now for most contractors looking for 1 property, then no. But once you get onto many properties, there's loads of advantages.

[TykeMerc]

The other important thing is why in hell would you actually WANT to do this?

As per your other thread you're aware that getting money out of YourCo Ltd in a tax efficient manner is a bit of a pain in the nuts once you hit the upper tax bracket so adding a separate unrelated income stream is irrational.

Add the other factors such as stamp duty, company assets and tax on sale profits and it's a plain daft thing to do unless you want to move your business into property management.

[Jeebo72]

You are all missing the important thing.....

It's 'buy to lets'

It really is....

I'm sure the OP has taken on board your undoubtedly useful information.

[tractor]

...

You are all missing the important thing.....

It's 'buy to lets'

It really is....

[Clare@InTouch]

Actually it's very simple. They're just slightly more expensive.

I've not tried it personally, but the advice from our tame IFA colleagues is that it's nigh on impossible. Maybe it just depends on who you are and your background.

[Jeebo72]

[QUOTE=Clare@InTouch;1937504]

Finally, mortgages for buy to let's are really difficult to get via a limited company apparently.

[QUOTE]

Actually it's very simple. They're just slightly more expensive.

[Jeebo72]

I doubt that's true....

It's not true, I'm doing that already.

[Clare@InTouch]

I doubt that's true....

Indeed - you can do it, it just might be a bad idea!

[Clare@InTouch]

You would need to sell the properties to the company at market value, incurring stamp duty and legal fees thereon. There could be VAT implications, flat rate VAT implications, and of course any rent is subject to CT. That may or may not be better, depending on your personal circumstances.

If you wanted to close the company you'd need to sell the properties, again at market value.

If you are a contractor then the properties would also be company assets, and fair game if for some reason the company was sued etc.

Finally, mortgages for buy to let's are really difficult to get via a limited company apparently.

In short, talk to your accountant

[stek]

I was on a small business training course the other day and the instructor mentioned specifically that you can't mix property business with other types of business in the same company.

Matt

I doubt that's true....

[robpow]

I was on a small business training course the other day and the instructor mentioned specifically that you can't mix property business with other types of business in the same company.

Matt

[kesm]

Hi all

I have a buy to let flat. I was wondering if it would be tax efficient to add this to my limited company? My boyfriend also has a buy to let and we are thinking of buying an additional property. Can I add this as well via my limited company. The other thought I had was to open a separate company for the buy to let's.

What is your advice?

Thank you!