How To Guide
How much income do you have?
If you’re paying the higher rate of income tax, and you don’t have a lower-earning spouse whose name the property income could be put into, the lure of paying the much lower rate of Corporation Tax is going to be strong.
Do you want the property income to live off?
Leaving it rolling up in the company (for future purchases, or just until your non-property income falls) will leave you better off than if you need to take it out to spend.
Do you use mortgages?
The ability to claim the entirety of your mortgage interest as operating expenses (once the new rules take hold) will be a major argument for using a company for any taxpayers.
Who are you buying properties for?
Initially of course it’s yourself, but what’s your exit strategy – do you plan to sell them off to finance fun in retirement, or is it important that you pass your portfolio on to your children or grandchildren?
If passing your properties on is important to you, holding them within a company (if structured correctly) could result in huge Inheritance Tax savings.