Setting up a limited company to buy to let

SamW1995

Looking at setting up a limited company to buy houses to then rent out on the market

The reason for this is to save on the 40% tax for a second income, I can afford to buy a house now and rent out in my own name but don’t want to be paying the 40% tax

I would be investing into it with my own money and the. Keeping the profits within the limited company to go towards repairs or investing into another property with the help from my wage from my day to day wage

Just wondering if this is legal and who I need to speak to to set this up

Thanks
Sam

buglawton

Ideally you should be a Tory Cabinet member who buys 7 or more flats in one go.
https://www.theguardian.com/politics/2018/apr/18/jeremy-hunt-investigated-breach-money-laundering-rules-luxury-flats
All perfectly legal and when you buy 7 you also avoid the extra stamp duty. The law was tailor made for the more wealthy you see.

00ec25

so you have enough cash to buy a property without a mortgage but yet you cannot work out who to talk to? oh dear.

go see an accountant.

SamW1995

No I’d have to take a mortgage out I have enough for the deposit and then the rent would pay for the mortgage each month plus profit to reinvest or use for maintenance

Comms69

buglawton wrote: »

Ideally you should be a Tory Cabinet member who buys 7 or more flats in one go.
https://www.theguardian.com/politics/2018/apr/18/jeremy-hunt-investigated-breach-money-laundering-rules-luxury-flats
All perfectly legal and when you buy 7 you also avoid the extra stamp duty. The law was tailor made for the more wealthy you see.

No, it wasn't. That's just silly

Comms69

SamW1995 wrote: »

No I’d have to take a mortgage out I have enough for the deposit and then the rent would pay for the mortgage each month plus profit to reinvest or use for maintenance

SamW1995 wrote: »

Looking at setting up a limited company to buy houses to then rent out on the market

The reason for this is to save on the 40% tax for a second income, I can afford to buy a house now and rent out in my own name but don’t want to be paying the 40% tax

I would be investing into it with my own money and the. Keeping the profits within the limited company to go towards repairs or investing into another property with the help from my wage from my day to day wage

Just wondering if this is legal and who I need to speak to to set this up

Thanks
Sam

Do you know any lenders that would lend £100,000s of pounds to a limited company with no accounts, no income, no history of payment?


No I don't either...

SamW1995

I wouldn’t be lending £100,000 of pounds, I can guarantee to pay it out of my own wage each month but would pay more tax hence the limited company part.

All I’m asking is who I needed to speak to about doing it if there’s a certain account or financial guidance ?

shinytop

https://www.mortgagesforbusiness.co.uk/news-insight/2018/january/personal-or-ltd-company-ownership-of-buy-to-let-property/


I thought I'd buck the trend here and post a response that might be helpful to the OP. I don't kow much myself about the subject but the above link might help.

Comms69

SamW1995 wrote: »

I wouldn’t be lending £100,000 of pounds - Borrowing, you are a borrower, not a lender! , I can guarantee to pay it out of my own wage each month - no you cant. Because you are not employed by the limited company! but would pay more tax hence the limited company part. - just stop, you aren't qualified to run a company

All I’m asking is who I needed to speak to about doing it if there’s a certain account or financial guidance ?

And I'm telling you that no-one is going to lend you the money to do this.

Comms69

shinytop wrote: »

https://www.mortgagesforbusiness.co.uk/news-insight/2018/january/personal-or-ltd-company-ownership-of-buy-to-let-property/


I thought I'd buck the trend here and post a response that might be helpful to the OP. I don't kow much myself about the subject but the above link might help.

I'd take that with a pinch of salt, they're a mortgage broker, not exactly an impartial source


The 'article' reads as one of the early payday loan adverts


Can I borrow £5000 pounds
YES!
Even if I work part time?
YES!
And have other debts?
YES!
...

anselld

Comms69 wrote: »

And I'm telling you that no-one is going to lend you the money to do this.

There are Companies who will offer BTL to newly formed LtdCo subject to personal guarantee, and all the usual affordablility tests.

The OP has at least stated the one reason why LTd makes sense, ie avoidance of high rate tax and retention of profits for long term growth.

As above need to do a lot more research and speak to accountant but it is not completely unrealistic.