High Kimberly, great video, I have 5 properties and considering, changing to Ltd Company, but my understanding is that I would have to sell them to the company and pay stamp duty on them again is this correct . Thank you
That would be correct, unless you can make use of any of the other allowances available such as Incorporation tax relief (however this tends to start with 6 properties in joint names). Video will come eventually on this topic.
There are limited company mortgages however they are very limited based on guidance from a finance broker. If yours cannot advise you may need to ask an alternative broker who can source the finance you are looking for.
Thanks for the video. I'm in the process of buying two properties and would like to avoid inheritance tax on them. The problem as I see it is that loaning the company the money to buy the properties would leave me with a loan account which would still come into my estate for IHT? Is that correct and is there anyway round that? thanks 🙃
I can confirm they would form part of your estate. However, cash can be given away at a future point in time which would then remove it out of your estate with a little planning.
Thanks so much for the reply. My thoughts are to have the company shares owned by my son's. Give half the cost of the properties to the company and loan the other half. Have the company pay back the loan over 10 years from income. Presumably that would leave the company fully out of inheritance tax?
Only the element of the company you own would come into your estate. The only question to ensure you consider is lending and whether if you want external financing that this is possible. If not needed then not a problem.
I believe this is more a legal question which is not my area of expertise. However, I believe the first question they would ask is how is it owned - joint ownership or tenants in common before looking at any other implications. I would suggest seeking legal advice on this query.
Helpful as always Kimberley 👌thank you
Glad it was helpful!
High Kimberly, great video, I have 5 properties and considering, changing to Ltd Company, but my understanding is that I would have to sell them to the company and pay stamp duty on them again is this correct . Thank you
That would be correct, unless you can make use of any of the other allowances available such as Incorporation tax relief (however this tends to start with 6 properties in joint names). Video will come eventually on this topic.
Great video. What about if you live in Northern Ireland - as you cannot get a mortgage within an ltd?
There are limited company mortgages however they are very limited based on guidance from a finance broker. If yours cannot advise you may need to ask an alternative broker who can source the finance you are looking for.
@@kimberleyshapcottpropertytax Thank you for the reply. It is very tough to grow a portfolio in NI with the lack of competitive LTD lenders.
Thanks for the video. I'm in the process of buying two properties and would like to avoid inheritance tax on them. The problem as I see it is that loaning the company the money to buy the properties would leave me with a loan account which would still come into my estate for IHT? Is that correct and is there anyway round that? thanks 🙃
I can confirm they would form part of your estate. However, cash can be given away at a future point in time which would then remove it out of your estate with a little planning.
Thanks so much for the reply. My thoughts are to have the company shares owned by my son's. Give half the cost of the properties to the company and loan the other half. Have the company pay back the loan over 10 years from income. Presumably that would leave the company fully out of inheritance tax?
Only the element of the company you own would come into your estate. The only question to ensure you consider is lending and whether if you want external financing that this is possible. If not needed then not a problem.
Is it possible buy 50% share in property though ltd company if someone already own 50% share in property in own name?
I believe this is more a legal question which is not my area of expertise. However, I believe the first question they would ask is how is it owned - joint ownership or tenants in common before looking at any other implications. I would suggest seeking legal advice on this query.