When it's owned by a partnership you can do anything you want with the income as you're taxed at source , with a ltd company there's LOADS of restrictions , believe me
You missed the biggest disadvantage to setting up an Ltd, which is 'double tax'. At some point, you will want to draw down profits from it to yourself, at which point you'll be first taxed corporation tax at 19/25% and then taxed again personally at 20/40%. So, regardless of whether you're a lower or higher tax bracket payer, in the end, you'll end up paying far more in total.
To avoid the 40% dividends tax, you either cut your hours at work (if you have a full time job) or you can employ your spouse and pay the dividends to them to avoid the 40% tax.
"To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis." - Robert Kiyosaki. I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already,got a new business my wife is managing, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made..😊
Hi Lawrence,I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in.I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?
uunderstanding the intricacies of investing is crucial. That's why it's important to have a reliable support system, such as a financial consultant, who can guide you, especially when it comes to selecting assets. Personally, I work with Regina Louise Collaro, an investment advisor who collaborates with a licensed wealth management firm. I must say that my financial journey has been exceptional under her guidance. Regina is widely recognized for her excellent services, so you may already be familiar with her. Thanks to her expertise, I have achieved financial stability and now earn a consistent monthly income through her passive income strategy.
That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
I searched for the name and found her website, where I saw her qualifications and testimonials that looked impressive, with many positive reviews. I reached out to her to discuss my financial goals. Thank you for pointing me in the right direction
I'm a friend of Regina Louise Collaro. I Know she possesses a deep understanding of the investment strategy and has consistently provided me with invaluable insights and guidance. Her ability to analyze market trends and identify promising investment opportunities has yielded impressive results for my portfolio. I have experienced steady growth and excellent returns on my investments under her guidance.
My accountant recommended to keep it in my name as I will own the property instead of the LTD company owning it. The tax implications when selling is higher
Thank you for the video and all of your content. Super helpful. One thing I think would have been useful to note which may be relevant for a portion of viewers is the implication this has on future purchases of property (thinking primarily those who currently don’t already own a second property in their own name). An additional 3% surcharge on stamp duty will in most cases be required as a result of a new purchase as it would now be classed as a second home.
Hey Rob! I have been following and listening to your podcast for a while. Just want to say thank you for all the great work you are doing and information you are sharing.
Hi, any thoughts on LTD vs Personal purchase for holiday let (Airbnb)? Ive heard the best way to separate liability is to set up two companies, one to buy the properties in, one to run the Airbnb. I will be drawing profits to live on and no need to consider inheritance quite yet. Aiming for up to two properties. Cheers
Great info. For me, the prospect of the Chancellor rowing back on the Section 24 rules on mortgage interest for individuals (like the Irish gov did) to encourage BTL investors back in is enough to sit tight with personal ownership rather than pay out the big fees to transfer to company. For new purchases, I guess it is more balanced. Or just go for SA.
What's SA? I'm considering LTD vs Personal for Airbnb, any thoughts? Would Airbnb (holiday let mortgage) be any different to a BTL situation or are the one and the same? Cheers
Hey Rob. Is taking a property on your name equivalent to buying a residential property ? Or you can get a mortgage for BTL as an individual instead of packing it into LTD straight away.
You can have a BTL mortgage in your own name or in a limited company, Same with a property that you rent out, in your own name or in a limited company.
If you already personally own some properties over many years but now because mortage interest is no longer an allowable expense you have a problem - but can the properties be transferred to a limited company without being liable for massive personal capital gains tax on the transfer, rendering it too expensive to do?
Yup. You’re in the group of people who are often better off selling up (ironically crystallising the gains). It’s not just CGT, it’s all purchasers costs inc SDLT.
However, not everyone will do that. Perhaps they will use the profits to fund their SSAS pension fund, thereby sheltering profits away from Corporation Tax.
How am I supposed to make profit if mortgage interest, which is huge ATM is not considered cost??? What kind of advice is that? Everyone who thinks to make money in BTL should buy into a company name period. Rob makes it sound more complex than it really is.
Bad tenants, bad landlords and THIS GOVERNMENT HASNT A CLUE, ALL PUNISHED BECAUSE OF THIS SMALL GROUP OF PEOPLE ,IF YOU TRASH A PROPERTY YOU MUST PAY ,IF A PROPERTY ISNT FIT TO RENT ,LANDLORD MUST PAY !!IF YOU DONT PAY RENT YOU CANT RUN AWAY ,LIKE MOST DO TO REPEAT THIS CRIME,!!!IT WILL GO ON RECORD !! AND IF LANDLORD DOESNT KEEP TO SATISFACTORY CONDITIONS, HE GETS FINED
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
Download free resource here: propertyhub.net/youtube/
When it's owned by a partnership you can do anything you want with the income as you're taxed at source , with a ltd company there's LOADS of restrictions , believe me
You missed the biggest disadvantage to setting up an Ltd, which is 'double tax'. At some point, you will want to draw down profits from it to yourself, at which point you'll be first taxed corporation tax at 19/25% and then taxed again personally at 20/40%. So, regardless of whether you're a lower or higher tax bracket payer, in the end, you'll end up paying far more in total.
He did mention the extraction of profits problem when talking about taking dividends.
To avoid the 40% dividends tax, you either cut your hours at work (if you have a full time job) or you can employ your spouse and pay the dividends to them to avoid the 40% tax.
"To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis." - Robert Kiyosaki. I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already,got a new business my wife is managing, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made..😊
Hi Lawrence,I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in.I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?
uunderstanding the intricacies of investing is crucial. That's why it's important to have a reliable support system, such as a financial consultant, who can guide you, especially when it comes to selecting assets. Personally, I work with Regina Louise Collaro, an investment advisor who collaborates with a licensed wealth management firm. I must say that my financial journey has been exceptional under her guidance. Regina is widely recognized for her excellent services, so you may already be familiar with her. Thanks to her expertise, I have achieved financial stability and now earn a consistent monthly income through her passive income strategy.
That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
I searched for the name and found her website, where I saw her qualifications and testimonials that looked impressive, with many positive reviews. I reached out to her to discuss my financial goals. Thank you for pointing me in the right direction
I'm a friend of Regina Louise Collaro. I Know she possesses a deep understanding of the investment strategy and has consistently provided me with invaluable insights and guidance. Her ability to analyze market trends and identify promising investment opportunities has yielded impressive results for my portfolio. I have experienced steady growth and excellent returns on my investments under her guidance.
Could I buy under a limited company as a first time buyer?
Hi, if I have a property with a mortgage in a limited, will this effect the amount banks will lend you for a personal mortgage?
Unfortunately benefits in kind is an issue , i've got one in partnership and the other in a limited company ... staying that way too
Can’t see the check list
My accountant recommended to keep it in my name as I will own the property instead of the LTD company owning it. The tax implications when selling is higher
Thank you for the video and all of your content. Super helpful.
One thing I think would have been useful to note which may be relevant for a portion of viewers is the implication this has on future purchases of property (thinking primarily those who currently don’t already own a second property in their own name). An additional 3% surcharge on stamp duty will in most cases be required as a result of a new purchase as it would now be classed as a second home.
Clear info cheers 👍
Does Holding property As a company mean the property can’t be easily used by family members if needed?
Hey Rob! I have been following and listening to your podcast for a while. Just want to say thank you for all the great work you are doing and information you are sharing.
Just come across this channel. Loving it!
I’d like to know the implications of a Family Investment Company. FIC
Thank you for this informative upload. 🙏
Not even put the video out yet!
And my answer is a mix of both.
Love your content, really enjoyed this video learnt a lot. Much appreciated.
Hi Rob, do you have a recommendation for a tax specialist?
Charley Courts
Hi, any thoughts on LTD vs Personal purchase for holiday let (Airbnb)? Ive heard the best way to separate liability is to set up two companies, one to buy the properties in, one to run the Airbnb. I will be drawing profits to live on and no need to consider inheritance quite yet. Aiming for up to two properties. Cheers
That’s an entirely different scenario… commercial property is so much better tax wise! Mine are in my personal name.
@@celiahall6168 not if you're only 20% or less tax payer
Great info. For me, the prospect of the Chancellor rowing back on the Section 24 rules on mortgage interest for individuals (like the Irish gov did) to encourage BTL investors back in is enough to sit tight with personal ownership rather than pay out the big fees to transfer to company. For new purchases, I guess it is more balanced. Or just go for SA.
What's SA? I'm considering LTD vs Personal for Airbnb, any thoughts? Would Airbnb (holiday let mortgage) be any different to a BTL situation or are the one and the same? Cheers
They won't do it because it won't lower rents for tenants.
Hey Rob. Is taking a property on your name equivalent to buying a residential property ? Or you can get a mortgage for BTL as an individual instead of packing it into LTD straight away.
You can get BTL mortgages as an individual without and LTD company needed
You can have a BTL mortgage in your own name or in a limited company, Same with a property that you rent out, in your own name or in a limited company.
If you already personally own some properties over many years but now because mortage interest is no longer an allowable expense you have a problem - but can the properties be transferred to a limited company without being liable for massive personal capital gains tax on the transfer, rendering it too expensive to do?
At the point you transfer property from personal ownership to a limited company, CGT becomes due.
Yup. You’re in the group of people who are often better off selling up (ironically crystallising the gains). It’s not just CGT, it’s all purchasers costs inc SDLT.
Like #81 great video mate
But you still need to pay tax on your dividends
However, not everyone will do that. Perhaps they will use the profits to fund their SSAS pension fund, thereby sheltering profits away from Corporation Tax.
Rob why you leave us hanging like that 😂
The memes devalue the video
How am I supposed to make profit if mortgage interest, which is huge ATM is not considered cost??? What kind of advice is that? Everyone who thinks to make money in BTL should buy into a company name period. Rob makes it sound more complex than it really is.
It had better be a good vid buddy otherwise you'll be down the Swannee!
Bad tenants, bad landlords and THIS GOVERNMENT HASNT A CLUE, ALL PUNISHED BECAUSE OF THIS SMALL GROUP OF PEOPLE ,IF YOU TRASH A PROPERTY YOU MUST PAY ,IF A PROPERTY ISNT FIT TO RENT ,LANDLORD MUST PAY !!IF YOU DONT PAY RENT YOU CANT RUN AWAY ,LIKE MOST DO TO REPEAT THIS CRIME,!!!IT WILL GO ON RECORD !! AND IF LANDLORD DOESNT KEEP TO SATISFACTORY CONDITIONS, HE GETS FINED