Purchasing a house/get a mortage via company?

alien123

Dear everyone,

I am new here and hope I can learn a lot of informations by sharing. I have got a question in mind but I cannot actually google it. Hope somebody in here would be an expert to help.

I am a locum pharmacist, which has just started one year of working and are looking to purchase a flat. My parents will give me some support on the deposit too.

First question, I understand its very hard for me to obtain a mortgage because I do not have a regular contracts. Will I still manage to obtain a mortgage with prove of receipts or remittance invoices from company like Boots, Lloyds, Tesco etc?

Secondly, I understand there will be tax advantage if I set up a limited company. As if I sold a flat, the capital gain will not be taxed straightaway. Instead I can use those (suppose to be taxed) money to reinvest on another flat (as it is a investment business). I really want to set up such a company. However, will the banks loan a mortage to a newly set up company as there is no history of income? Parents and I will put all our hard earned money to start and hope everyone can help.

Oh, lastly...if we use brokers. Will it be more expensive then we go to the banks ourselves? Sorry to sound so useless as the whole family has never bought a house.

Thanks in advance

alien123

I do not know why my post does not get any interest. May be is boring stuff. But your help will be deeply appreciated to help our family. thx

Thrugelmir

Capital gains tax is paid by Limited Companies as well as individuals. So I am unsure as what you are trying to achieve in this regard.

Although you have an irregular income stream it shouldn't mean that you can't obtain a mortgage. However you are probably best advised to approach a mortgage broker to deal with this.

alien123

With regard to capital gain tax. Do I pay every year for tax return instead of paying straightaway when I sold the house? Lets say I make 40000 on capital gain. For personal transaction, I will need to pay tax straightaway. However, if I use the 40000 in the 'investment company' for another house deposit, which meant I deferred my gained to another investment (Hence, my company didnt make money at all). Will I then not need to pay capital gain tax? Please advice. I will go for broker option. Thx

alien123

Any friendly reply with my thought will be appreciated. thx

Thrugelmir

In simple terms the Capital Gains Tax liability cannot be deferred by purchasing another asset. On realising the taxable gain , tax will become payable.

Suggest you take professional advice as to the tax treatment of investment companies. As their are other issues to consider.