Transferring property to a limited company

00ec25

Crashy_Time wrote: »

Too much hassle for Average Joe, many will just sell up,

not if the numbers stack up as a Ltd Company, or retained as a non company LL anyway

gingercordial

Jojo_fry wrote: »

Given that the buying expenses should be deductible

According to whom?

If you're talking about the legal fees arising from buying the property, those are not deductible for income tax. They will form part of the CGT calculation on an eventual sale.

Mortgage arrangement fees will be affected by the new restriction rules.

somethingcorporate

It appears you have got into something without doing even the most basic of research.

I hope you are up to date on your responsibilities as a landlord.

noddynoo

Lol 'efficiency'

Crashy_Time

00ec25 wrote: »

not if the numbers stack up as a Ltd Company, or retained as a non company LL anyway

Most people can`t make the numbers stack up now, let alone after the tax changes?

Crashy_Time

qwert_yuiop wrote: »

Anyone using a mortgage in the buy to let game who's not rich is taking a major risk, and needs to be sure they can cope with void periods. Interest rates will go up at some point. Rents and house prices can go down. Have they costed for this? This could all go horrible.

The changes were flagged well before October.

People were in the BTL game to GET rich, not because they were rich?

iDragon

Why so important to stay under HE bracket anyway? it's not as if earnings under that bracket get taxed at higher rate?

qwert_yuiop

Crashy_Time wrote: »

People were in the BTL game to GET rich, not because they were rich?

Well, good luck to them, if it's all done on borrowed money, as it seems to be in this case. A lot of things can go wrong.
If someone is in the high earning band, they're likely to have a bit more savings to minimize debt, and are more likely to be able to cope with the costs that might appear, primarily void periods.
Maybe I'm too cautious, but I'd like to be earning more than that before getting into property speculation on a mortgage.

Crashy_Time

qwert_yuiop wrote: »

Well, good luck to them, if it's all done on borrowed money, as it seems to be in this case. A lot of things can go wrong.
If someone is in the high earning band, they're likely to have a bit more savings to minimize debt, and are more likely to be able to cope with the costs that might appear, primarily void periods.
Maybe I'm too cautious, but I'd like to be earning more than that before getting into property speculation on a mortgage.

It did look like a one way bet though, until the government changed the tax rules.

Jojo_fry

As we have an interest only mortgage the payments are affordable, we have of course costed it all out to ensure that we can cover any void periods, that's not the issue. I was just trying to find out the possibilities as well as cost/benefit of moving this venture to a limited company rather than as a private individual. In these circumstances it seems we are better off going ahead as we are. Given that this isn't a second property, it's my partner's only property, we have paid less stamp duty than would have been the case as a company and so that will offset the tax we might have saved in any case. Looks like it may be wise to sell up after 2 years before the full tax changes kick in but can cross that bridge when we come to it. Thanks to those who offered genuine helpful advice.