Ltd company to avoid SDLT?

grey_gym_sock

adonis10 wrote: »

I think my main reluctance is the fact that the rental income would pay my mortgage which would be of great help in the shorter term; putting 180k ish into stocks will more than likely pay off long term, with reinvested dividends etc., but no help to the monthly mortgage payments.

well, you could get a dividend yield of c. 3% from shares - that's not very high for shares. though it may indeed be better to reinvest dividends rather than use them to pay your mortgage.

since this is the cutting tax board, i should point out that you'd pay minimal tax on those dividends, since from next tax year there will be a £5,000 annual dividend tax allowance. and you could move £15,000-worth of shares into stocks & shares ISAs each tax year.

adonis10

grey_gym_sock wrote: »

well, you could get a dividend yield of c. 3% from shares - that's not very high for shares. though it may indeed be better to reinvest dividends rather than use them to pay your mortgage.

since this is the cutting tax board, i should point out that you'd pay minimal tax on those dividends, since from next tax year there will be a £5,000 annual dividend tax allowance. and you could move £15,000-worth of shares into stocks & shares ISAs each tax year.

Yes, I'd want to re-invest the dividends. I've no idea how much of the capital to invest, where to put £15k/year into S&S ISA etc. I really have no idea of the best way to go about this and generally don't trust many advisors as they're all generally out for themselves and their cut. If you could recommend a good way of impartial advice, that'd be much appreciated.

grey_gym_sock

adonis10 wrote: »

Yes, I'd want to re-invest the dividends. I've no idea how much of the capital to invest, where to put £15k/year into S&S ISA etc.

yes, you might well want to keep some cash. of money invested, you can hold more-or-less the same investments inside and outside S&S ISAs. so can sell £15,000 of unwrapped investments each year, and use that to fill S&S ISA (called "bed & ISA"), if not filling it with new money.

I really have no idea of the best way to go about this and generally don't trust many advisors as they're all generally out for themselves and their cut. If you could recommend a good way of impartial advice, that'd be much appreciated.

this has improved. advisors are no longer paid with commissions, but with fees agreed with the client. an IFA is best, as can advise on all products. as opposed to "advisors" who can only advise a small range of products (that should really be called "sales").

fees can either be "transactional", i.e. pay 1-off fee to set something up; or "servicing", i.e. an annual fee (which covers doing "bed & ISA"s, reviewing portfolio, etc). with servicing, there may or may not also be an initial fee.

fees can be a % of amount invested, or in £.