To be LTD or not to be…that is the question.
And something I get asked about every so often.
It’s also a question where there is no simple answer. But it’s something that has become quite a ‘thing’ in more recent times and property buyers who would otherwise never have much cause to venture into the world of incorporating companies, are having to get their heads around.
Before going any further, I must point out that I am not a tax expert and not qualified to give financial advice. If you are reading this article because you are considering buying property through a limited company or other vehicle, then you must consult a suitably qualified professional. I’m sharing this information based on my understanding of the current rules – but this shouldn’t be considered advice or any kind of recommendation.
OK, so that over with – why are people now buying in a limited company?
And the effect of changes in the rules on treatment of profits from property that were first announced back in 2015, and have been gradually phased in since then. Ignoring for now the surge in property transactions during the Covid pandemic – thanks in part to the Stamp Duty Holiday – reports suggest that 80% of new mortgage applications are now for limited companies. So this is a hot topic.
Ensuring you set up your property purchases within the right structure could save you thousands of pounds in tax over your lifetime, so here’s my 10 reasons why a purchase through a limited company should be considered.