How to move buy to let properties into a limited company TAX FREE | Limited company property taxes
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- Опубліковано 4 жов 2024
- To work with me head to www.jsmtax.com
If you've got properties in your own name the chances are you've been impacted by the section 24 finance cost restrictions, this has led to many landlords paying far more in tax.
One way around this has to been to incorporate the property portfolio into a limited company which still benefits from being able to deduct the full mortgage interest payments. However, there are two important taxes to consider and if you get this wrong you could be hit with a huge tax bill.
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Our videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers. They in no way constitute specific advice to your specific circumstances. Me & my team would be delighted to help you with your specific queries or accounting requirements through a formal engagement.
This video has aged well with Starmer coming for these kind of properties. Landlords of all a kinds are selling before the October budget. Never have I seen so many homes put on sale in the market. Finally I can buy a home!!
Excellent and clear information on conditions of transfering properties into a company
You said that if you passed the properties on within the Ltd company that you would get a ' tax free uplift as part of inheritance tax', can you explain this advantage please?
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All good info. Just wanted to know your thoughts on the financial side. I have a business loan on my commercial BTL. Will I have to refinance by selling to a newly incorporated company?
Appreciate the detailed breakdown! 🧐 Need some advice: 🙏 I only have these words 🤔. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I don't know what they are. What should I do with them? 🤷♀️
Would love a quick call on this :)
Thank you Joshua!
Great Video. Would be great to. Know more and also discuss such things as IHT.
Hi, really like your advice and I need some further advice on incorporating into a LTD pls
dont do it it will cost you thousands and who says Govt won t tax Ltd company more i future there are no guarantees with this apart from the fees your going to pay
I like your content and enjoy learning from you. I wish to see a lot more of the educational and valuable youtube content you put out. Keep up the awesome work! : -
I would love a quick call on this if possible. Thanks
Appreciate Joshua
Hi Joshua, many thanks for this information 🎉
hi Joahua, I would love to know more about it.
My sons grandmother has several unencumbered properties. She would like to gift him a property to his Ltd company. Is this a wise move ? I am finding it hard to get advice on this.
Josh great content....
Thank you 😎
Great content thanks for sharing this Joshua, not sure about mortgage complications currently under personal names
What are the chances of HMRC adding section 24 AND personal income tier tax to ltd owned property for income derived from property. I've heard they are trying to find a way where ltd owned property will suffer the same tax as personal tax liability.
We can only speculate but I am personally doubtful. I believe this whole strategy is to incentivise landlords and investors to utilise LTD companies for investing. This leads to tighter reporting and auditing. As the regs tighten around things like EPC and standards it is also easier to keep track. I think it solves for the large percentage of landlords who in the past didn’t declare their property income and that was perhaps their main driver.
Dont do it no guarantees and lots of pit falls Just stick where you are and save the fees and pay the tax
@@Jeffybonbon there are no guarantees in life save death and taxes, but that’s not a legitimate reason not to investigate optimisation and improvement in life 😊
@@Jeffybonbonpay tax help nation, good man 👨
I've just come across this video - recommended by my cousin. Thank you Josh
I'd be very interested in having a conversation with you to scope out the feasibility of moving my portfolio (x10) from personal ownership (me & wife - partnership) to an incorporated structure - LLP or Ltd. I have looked for this route before but deemed it would be too expensive with CGT & SDLT. However this now sounds like it is possible?
Good man thank you 😊👍
Great video Josh, would like to know more, are u still in Dubai?
Mortgage rates are higher for a Ltd company aswell. Wasn’t worth it to move them to a ltd company for me
Its not worth doing and the cost is tens of thousands of pounds and who is to say the Govt will not tax Ltd more in the future they have already cut the tax free dividend dont do it by 2028 there will be rises in threshold so just pay the extra tax and put up rents
@@Jeffybonbon did you watch the video son? there are ways to get around the tax when transferring over to a ltd
@@Jeffybonbon LOL
thank you!
And all this while the working man and woman on PAYE are taxed at the highest rate in 7 decades!
All these loopholes need closing immediately!
A lot of “working men and women” own second properties for a better pension for example. We all pay taxes. Let your money work for you.
Hi Joshua, Nice video. Thanks. I want to know if I need to book a call with you. What's the procedure regarding the property business.
I have one property that i am unable to sell at the minute because of cladding unless to a cash buyer. So I rent it out but barely making anything off it and am unable to move on with my life. Is there anyway I’d be able to set it up in a smarter way than my current “permission to let”
I am in the same situation s you are. Can we move the property to LTD company as the current value is 0 according the mortgage company because of cladding issue and un sellable.
What about higher dividend tax ?
If there are 3 directors of a limited company and 1 dies do the remaining 2 directors have to pay capital gains if it's a property.buisness
Good question, directors in a LTD company are different to shareholders. Directors have the responsibility for managing the company and its trade, as well as reporting to HMRC etc. The shareholders own the business in whatever format their shares and shareholder agreement defines. It is possible through use of different share classes (including freezer shares) for ownership of a LTD company to pass on to other existing shareholders without attracting inheritance tax. No capital gains tax is applicable in that’s scenario either.
Great video Joshua, I look forward to more of your tax tips🙌🏽
Appreciate it, answering your questions this week!
Need more advice
Hi how can you sell rental property to limited company I don’t now what do can you let me now how tax I need to pay thank am ur subscriber 😊
Excellent video. Very informative
What if one property is in my company 's name but I am the director , is it counted to the other properties I have on my personal name to result in the weekly 20 hours ?
Great video, could you say you work 20hrs a week with a single buy to let that is self managed?
Same question!
@@letsplaywitheesa1668no he said 5 or more properties. It’s not justifiable..
I have tow property on my name I want to move to limited company and
More property’s how do I do this am ur subscriber
Hi
How can I get in touch with you as I would like to transfer my BLT in a LTD company
Property on just my name
hello, I own a flat in my personal name, which has been my first property which I have lived in since purchase. I am looking to transfer it to a ltd company, it is worth 120k which is less than the sdlt threshold, can I use Private Residence Relief scheme and not pay any tax?
Think very carefully before doing this! Great if you have kids to leave it to. If Not so easy to get your cash back out - double taxation !
Great content Josh, highly appreciated. Would you also support the use of a “Deed of Trust” as a way of avoiding Stamp Duty and Capital Gains Tax?
Not in most cases, doing it the proper way is my preferred route
Ah Nick! I remember seeing you on the touchstone mastermind programme. Hope you’re doing well!
Hi what paperwork do I need to give my accountant so they can prove the criteria have been met?
Can I transfer my first rental property I purchased in my personal name to a limited company , it got no mortgage and a good tenant, I have another 5 properties in the limited company at the moment. Thanks in advance
Who do you recommend to help move properties into company structure?
Everyone tells me to get financial advice but I just want an example of someone who has done it with only one BTL.
I'm not wealthy enough to get the attention of these magic tax advisers.
Hi Joshua
I have 17 properties in joint names with my wife . I was looking to transfer these to my property limited company. Can you help with this I could not see how to contact you
Regards Tim
Hi Tim, yes we can help with this. First place is to schedule a consultation for us to provide advice - jsmtax.as.me/consultation
Hi Joshua, how can i contact you?
Yeah its not a simple as that. Buying or transferring a house from personal to business will increase the Mortgage tax rate and stamp duty!!!!!!!!!!!!!
How do i prove im in partnership?
3:03 for future reference
Hi Great video! Well explained Could i book a call for a chat...
And if you're not married or in a partnership?
So by partnership Josh isn’t referring to your romantic relationship, he’s talking about your business partnership. For example, if you and “Bob” run a HMO together, you are technically business partners. It could also be spouses of course but the romantic aspect isn’t a prerequisite for incorporation relief.
@@Holdeenio after asking about this possibility, one could be liable for other taxes such as class 2 & 4 national insurance + other tax bill submission relating to LLP.
@@user-wj4et6gh5n working in a “partnership” is not necessarily the same as a LLP in HMRC’s eyes. Two individuals running a property business, with properties owned in their own names is a partnership. But if the route to LTD Co incorporation includes a limited liability partnership stage, which it usually does, then the costs associated with running that LLP would of course be incurred. NI is such a variable cost (dependant on how the entity is operated) that no one really talks about it in relation to property. LLPs can be incredibly tax friendly if operated efficiently.
Hi would like a chat with you 1:38
Interesting information- thank you Joshua.
We set an informal partnership up (four family members) around 9 years ago & have four properties, does this affect CGT & Stamp Duty if we were to incorporate?
That sounds like a pretty good situation to apply for incorporation relief. Look up property118 👍🏼
stick with LLP dont move to a company
@@Jeffybonbon an LLP is a corporate entity, just not a LTD Co. There are benefits to each option, but for most professional investors with other streams of income, an LLP is not the most effective vehicle to hold properties. It’s great for commercial property (upon which one can claim capital allowances) or for leasing cars through, or for sideways relief but not for generic residential investment.
It’s also even more effective (through looser controls, for inheritance strategy) but LTD Co. can do much the same with suitable share structures and articles.
It's funny when you say that we will have to pay GGT when we sell our home etc, I sold my previous home 3 years ago then purchased another one and sold it last year. After contacting HRMC they confirmed that I don't have to pay GGT as when you sell your main home GGT doesn't apply. Your information contradicts what HMRC says on its website.
LOL HE'S NOT TALKING ABOUT YOUR OWN RESIDENTIAL PROPERTY
And what is GGT? Did you not get it - this is on additional properties to your own residential one? Doh!!
@@huwroberts721 I made a mistake its CGT. When did he mention this to be about second property and not residential? I watched a few times but cant find it.
@@Vvvggghj So is he talking about what? He mentioned about tax on a property in your name or LTD Company. I didnt hear the mention that this is about commercial property and not residential. LOL!
Hi Josh, is there more benefits to do this now with the stamp duty holiday? Is this worthwhile for 2 properties? LTD vs LLC right now? Thanks
Hello Josh , thank you for all your videos are good help , as i have got a 1 house residential and the second one buy to let but both are in my name , how can i move i to the LTD, need to pay stamp duty, taxes etc again or not , as i would like to increase my profile , but i am full time employee 64k a year , income rental 2k a month
I'm in the same situation, hope to get some great answers
Dont do it your jumping from the Fire into Frying Pan there is no guarantee taxes on Ltd Co will not change The cost of doing this are not low I have personal BTL and I am sticking where i am Have you not noticed corp tax is higher now and the tax free dividend is being cut S24 is not great but the more i see of LTD co at some point after 2028 tax thresholds will rise and the impact of S24 will lesson just pay thee extra cash and stick with personal yes if your buying more property use Company
THIS IS AN ABSURD COMMENT!!!
I agree with Mr Smith - the scheme smacks of avoidance which will be jumped on as numbers doing it rise. I am more concerned with CGT on selling properties we have had for years,and then IHT at some point.
HMRC are looking at this now its avoidance @@Vvvggghj
I was told last week HMRC are looking at this topic @@Vvvggghj
read the latist HMRC UPDATE@@Vvvggghj
Great information, it will be great to contact you if possible
I’ve to have a chat as well!
Salaried=slavery. Self employed business= freedom that is if you are successful
Hi Joshua, I’ve had a BTL flat in my name for a while and I’m unmarried, would like to book in a call with you to discuss the feasibility of me moving it into a LTD company. What’s your contact details please