Transition from Private Landlord to SPV limited

Domster

Hi

I came across a video in youtube called "Section 24 - BTL - Buy To Let Tax Changes Explained | Landlord Buy to let tax solved | Incorporation" that explains how to mitigate some of the effects of section 24 (sorry cannot put the link here as I am a new user)

I have tried to do some homework on the content, but I would be the first to admit that most of the stuff in the video goes over my head.

Before I have a very expensive and potentially pointless chat with a property tax specialist, has anybody here gone from being a private landlord to use a SPV?
Where you able to use any of the techniques listed in the video?

The part I am particularly interested in is the concept of beneficiary.

PS
All properties and I are in Scotland... not sure if this makes a difference.
I have been in BTL for 20 years and I have 7 properties in my portfolio at the moment.
I managed the get a good deposit vs mortgage vs rent ratio for all property so the changes in taxation have increased my tax bill and not the viability of the investment.

Disjoint

In a nutshell and I might be completely wrong:

If you move it in an SPV you'd pay CGT and then stamp duty again.
Sure you can then deduct interests, but it doesn't make sense for you.
All new properties you should probably put in an SPV, not for your existing portfolio

SouthLondonUser

You need to distinguish between taxes on rental income and taxes on capital gain if you sell for a profit.

At a very high level, with a property in an SPV you pay less tax on your rental income because you can deduct more costs, namely all of the mortgage interest.

BUT

SPVs pay corporation tax, not capital gain, and, unlike individuals, do not benefit from any kind of capital gain allowance. So, if you sell for a profit then distribute the proceeds to you, in most (if not all) cases you'd be paying more tax than if that property had been in your name.

This is the super-high-level summary. The devil is in the details, of course.