Multiple Properties - Form a company

somethingcorporate

For a £1m portfolio you're best off getting professional advice you can rely on rather than the advice of a bunch of online nobodies with zero come back if it goes wrong.

Go and see an accountant to discuss your options, a few grand invested in solid advice could save you tens of thousands (if not hundreds) in potential tax if this is an on-going business.

RedTiger123

somethingcorporate wrote: »

For a £1m portfolio you're best off getting professional advice you can rely on rather than the advice of a bunch of online nobodies with zero come back if it goes wrong.

Go and see an accountant to discuss your options, a few grand invested in solid advice could save you tens of thousands (if not hundreds) in potential tax if this is an on-going business.

I've briefly discussed this with my own accountant and he goes around everything before getting to the point. I wanted to reach out to people on here to build a base-level of knowledge so when I do meet with an accountant/specialist, which I would obviously do before I go ahead with any actions.

Plus I asked people on here for help before regarding a house that I have lived in and currently rent, and the information received on here was more valuable than 2 hours with an accountant - paid for advice.

Maybe I need a new accountant..

Also as a side note, I have lived in each of the properties. Some a minimum of 14 months up to 30 years. I have owned them since moving out of them and have rented them since.

somethingcorporate

I'm no expert from reading around this site your "side note" is actually quite important and the periods lived in the properties will have an impact on the CGT payable on each property.

It really does sound like you need a new specialist/accountant that is an expert in this area. Do you know any other LLs, member of a LL association/forum etc where you can ask for recommendations of an appropriate person?

RedTiger123

Understandably the side note has an importance but the initial question was in regards to setting up a company and whether the company would be necessary.

I was unsure who to seek advice from, otherwise I wouldn't be here. As mentioned my accountant is of limited help and I assumed other accountants may also be unsure how to help me with this situation; it's not really your most common situation to be in so I was under the assumption a standard accountant wouldn't be able to help.

The previous advicd I received here, was as mentioned, better than my accountants. If you could suggest who/what sort of consultant I should look for then that would be appreciated.

Savvy_Sue

RedTiger123 wrote: »

We have a son who is who over 18, one under 18. Can we put a house in their name? Would that help?

No idea if it would help, but I don't believe under 18s can own houses unless you put the property in a trust, with trustees, so that's another level of complication.

Accountants, like solicitors, have different specialities. If you're arrested, you don't want 'a' solicitor, you want one who specialises in criminal justice. But if your wife then divorces you, you don't want that criminal justice solicitor, you want one who specialises in divorce. And when you come to sell any of these homes, you want one who specialises in conveyancing.

I don't know what your accountant specialises in, but if it's not property then it's time to move on, IMO.

RedTiger123

Savvy_Sue wrote: »

No idea if it would help, but I don't believe under 18s can own houses unless you put the property in a trust, with trustees, so that's another level of complication.

Accountants, like solicitors, have different specialities. If you're arrested, you don't want 'a' solicitor, you want one who specialises in criminal justice. But if your wife then divorces you, you don't want that criminal justice solicitor, you want one who specialises in divorce. And when you come to sell any of these homes, you want one who specialises in conveyancing.

I don't know what your accountant specialises in, but if it's not property then it's time to move on, IMO.

Yes I do believe it is over 18 to own a property, but I thought I'd include under 18 as he is 18 this year but not at this moment in time.

I completely agree. I will need to look in to property specialist accountants as the one I use now is the one who helped me with previous work - in a different industry to the housing rents.

I understand solicitors have different specialist areas though I wasn't 100% sure accountants did - mainly because the ones I've spoke to have been 'general/business accountants' or at least to my eye.

Will look at local house specialist accountants. Thanks.

Dead_keen

I agree with finding someone who understands the ins and outs of these things. Some other things to think about include, capital gains tax on the transfer of the properties to the company, including whether holdover relief would be available, and stamp duty. It's also worth considering how the company would finance the properties - could it actually get a bank loan and, if so, how does the interest rate compare with what you pay now? As has been said, another issue is what are you going to do with all the money the company makes. It makes a big difference if you want to spend it or want to reinvest it.

While an under 18 can't hold the legal title to a house, they can own the beneficial interest in it. But any profits from renting it would be taxed on you until they were 18 (assuming more than £1k).

Mattygroves2

What you want is an accountant who specialises in capital taxes ie. capital gains tax and inheritance tax not just houses. They will understand all the CGT rules and can advise ways of reducing the tax payable if it is possible.

silvercar

Be aware that there are plans to introduce taxes on properties held by companies.

https://www.gov.uk/annual-tax-on-enveloped-dwellings-the-basics