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jazimus
Posts: 3 Newbie
Can anyone advise?
I borrowed a further £200K on my mortgage to finance a Short Term Rental property purchase in Florida. I lose around £20K pa in expenses against this property so had an idea.
If my Limited Company were to purchase the FL property I would not have to draw £20K pa extra and therefore save on income tax.
The company after purchase would absorb the £20K loss therefore saving corporation tax.
What would be the best way to do this in terms of consolidating my finances?
1) Take out a commercial loan/mortgage (difficult and would have personal guarantee on my UK home) and pay off £200K on mortgage.
2) Loan the Ltd company the funds myself for it to buy the property (charging interest and having a first charge in case of default on loan).
3) Lease the property to my company and still own it myself thereby paying off mortgage with rental income.
Grateful of any ideas or experiences.
Thanks.
I borrowed a further £200K on my mortgage to finance a Short Term Rental property purchase in Florida. I lose around £20K pa in expenses against this property so had an idea.
If my Limited Company were to purchase the FL property I would not have to draw £20K pa extra and therefore save on income tax.
The company after purchase would absorb the £20K loss therefore saving corporation tax.
What would be the best way to do this in terms of consolidating my finances?
1) Take out a commercial loan/mortgage (difficult and would have personal guarantee on my UK home) and pay off £200K on mortgage.
2) Loan the Ltd company the funds myself for it to buy the property (charging interest and having a first charge in case of default on loan).
3) Lease the property to my company and still own it myself thereby paying off mortgage with rental income.
Grateful of any ideas or experiences.
Thanks.
0
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