Scooby96

I have just put an offer in on 2 flats in Hastings but wondered if it would be more tax efficient to run them through a Limited Co?

Does anyone already do this / or been advised not to?

If you prefer not to post could you email me at:

chris.knowles@axa-ppp.co.uk

Thanks

S96

OllyK

All depends, if you plan to rent them out as a landlord then you will have to pay income tax what you charge offset against any costs of maintaining the property. If you do it through a ltd company you would have to pay business taxes and then income tax on what the business paid you, plus all the NI and other things you would have to sort like VAT etc. Lot of work to rent a couple of properties that way, if you have a lot of them then it may just be worth it

chinnybloke

I think Ltd's can make something like £10k-£11k tax free so if the profit isnt over that you wont pay anything. If it's an Ltd, cant you also take out cash as dividends and pay less tax?

I am not an accountant, that is just what I think. An accountant should answer something like that for free though I would have thought.