Stay as a landlord or sell?

michael1234

https://forums.moneysavingexpert.com/discussion/comment/81952775#Comment_81952775

If you lent your company say 200k to buy a flat, you can get the first 200k out of the company tax free. Moreover, everyone has a tax free allowance every year. Then there are pensions you can contribute to and many other things. You have full control over when and how much to withdraw.

The only downside is the time and complexity involved (which equals money if you waste it on the financial advisor/accountantcy industry). So I would agree its not a panacea in the sense that you can just push a button and expect to make lots of savings.

anselld

it is delusional to treat 200k loan repayments as tax free income.

I would agree there are advantages when it comes to pensions. Also the avoidance of the MTD bureaucracy. There are other disadvantages on winding up, again associated with the ability to extract funds from the Company.

I have done both and it really is no as clear cut as you are claiming. There is a whole book on the subject by Carl Bayley and even his conclusion boils down very much to “it depends on circumstance”.

michael1234

https://forums.moneysavingexpert.com/discussion/comment/81953665#Comment_81953665

https://forums.moneysavingexpert.com/discussion/comment/81953665#Comment_81953665

All I said was "If you lent your company say 200k to buy a flat, you can get the first 200k out of the company tax free." I said nothing about any tax the company may pay.

Why is that delusional?

anselld

https://forums.moneysavingexpert.com/discussion/comment/81954041#Comment_81954041

Because it is not income; there is no tax advantage. You could hide the money under the mattress and get it back tax free.