Company vs personal ownership of assets

Mrs_pbradley936

I have an appointment to see a tax planner next week and rather than appear as a complete moron what sort of things should I ask him? it is at the suggestion of my usual accountant who has calculated my assets and thinks I will benefit from "incorporation relief". I have some inherited properties (not mortgaged), and a nice pension, some money in NS&I plus my own home. At the moment I just have things owned by me and rents and pension is paid into my personal bank account. I have an accountant that tells me how much to pay HMRC every 6 months. 

I am perfectly content but my accountant thinks he is being remiss not to tell me to see this other chap so I agreed to go.

eskbanker

I guess the obvious questions would be how much tax could I legally avoid, and how much effort would be involved in doing so?

If you're renting out multiple properties then some banks would already consider that to be a business so having rents paid into your personal account isn't without risk, so you might wish to consider reviewing your banking arrangements too....

Jeremy535897

If an individual inherits a few properties that are let out, I suspect this is neither a business as far as the banks are concerned, nor a business for incorporation relief, but it all depends on the specific facts (I can't imagine any bank being bothered though).

As you have no debt, the main advantage from incorporation relief would be if you had no need of much of the rental income, so could accumulate the surplus net of 25% corporation tax within the company rather than paying a potentially higher rate of income tax.