You say that it is tax free, but you can only pay dividends on profits which are subject to corporation tax (19%). Why does everyone say this is a tax free transfer when the Trading Company has to pay tax on those profits? Honestly would like an answer as this currently affects me.
@@jadenhunter4665 no if you pay a dividend to a Holding Company it is instantly classed as profit it the Trading Company. Therefore subject to 19% corp tax. The Holding Company does not pay tax on dividends received which is great, but if you own both companies your still down 19%.
It is tax free in the sense that it never enters anyone’s pocket, never becoming a paycheck, and therefore bypassing the income taxes. You can also “balance” out corporation taxes by sending the money to other subsidiaries that are in need of resources and writing it off (technically lowering profits by reinvesting it before it is considered a profit). Had it entered you private bank account before all this, you’d have to pay income taxes before sending it back to the company, losing a lot of money that could’ve been reinvested. However, you’re right, you always have to pay corporate taxes on profit.
@@whengrapespop5728 thanks for the long explanation circling back to my original point. You lose 19% on dividends from the trading company to the holding company.
Or you can just set up another company in dubai and from that dubai company invoice the Uk company as a consultancy fee and just pay the dubai company from you r uk company
An Umbrella/Holding Structure is for large scale thinkers who want to grow their business(es), and it’s how every large corporation does it. In fact, that’s how a country in and of itself does it; a country is pretty much a giant group organization. As you invest in more subsidiaries with your main holding company, the main holding company acquires multiple sources of income and can reinvest those profits into any owned subsidiary. That way, the subsidiaries grow accordingly, resulting in even more profit, and you can open more subsidiaries, ending up with a giant group organization.
True, but creative finance is better in this market anyway. You can still do traditional financing with this concept but your rate would be significantly higher but at the end of the day if you get the home you want at the monthly price that is suitable, it won’t matter at the end because you can refi when rates drop. Best of luck to you!
Hi...does this include subsidiary companies trading for example usa at 21% corporation tax? Can I move over the revenue generated in USA to another company (property investing) through holding company set up? Ty
Imagine now having multiple holding companies, overseen by one large holding company, and you pay yourself as that manager .. no way uncle Sam getting his piece..
That’s in fact exactly how it’s done by all large corporations. An Umbrella/Holding Structure is for large scale thinkers who want to grow their business(es). In fact, that’s how a country in and of itself does it; a country is pretty much a giant group organization consisting of many subsidiaries. As you invest in more subsidiaries with your main holding company, the main holding company acquires multiple sources of income and can reinvest those profits into any owned subsidiary. That way, the subsidiaries grow accordingly, resulting in even more profit, and you can open more subsidiaries, ending up with a giant group organization in the future.
I recommend looking up organizational charts of major corporations. It’s quite mind blowing how many companies are involved. Comcast is a great place to start, but Disney is also mind blowing
Very interesting. Could you do a video on this in more detail please?
You say that it is tax free, but you can only pay dividends on profits which are subject to corporation tax (19%). Why does everyone say this is a tax free transfer when the Trading Company has to pay tax on those profits? Honestly would like an answer as this currently affects me.
Makes sense but he can keep majority of the profits in the holding company or a trust and pay small amount to corporation
@@jadenhunter4665 no if you pay a dividend to a Holding Company it is instantly classed as profit it the Trading Company.
Therefore subject to 19% corp tax.
The Holding Company does not pay tax on dividends received which is great, but if you own both companies your still down 19%.
It is tax free in the sense that it never enters anyone’s pocket, never becoming a paycheck, and therefore bypassing the income taxes. You can also “balance” out corporation taxes by sending the money to other subsidiaries that are in need of resources and writing it off (technically lowering profits by reinvesting it before it is considered a profit). Had it entered you private bank account before all this, you’d have to pay income taxes before sending it back to the company, losing a lot of money that could’ve been reinvested. However, you’re right, you always have to pay corporate taxes on profit.
@@whengrapespop5728 thanks for the long explanation circling back to my original point.
You lose 19% on dividends from the trading company to the holding company.
Or you can just set up another company in dubai and from that dubai company invoice the Uk company as a consultancy fee and just pay the dubai company from you r uk company
Or Wyoming
An Umbrella/Holding Structure is for large scale thinkers who want to grow their business(es), and it’s how every large corporation does it. In fact, that’s how a country in and of itself does it; a country is pretty much a giant group organization. As you invest in more subsidiaries with your main holding company, the main holding company acquires multiple sources of income and can reinvest those profits into any owned subsidiary. That way, the subsidiaries grow accordingly, resulting in even more profit, and you can open more subsidiaries, ending up with a giant group organization.
Isn't this illegal?
@@whengrapespop5728well explained
Just done this and mortgage companies don’t like this at all. I had lender will to offer me a mortgage and that is it.
True, but creative finance is better in this market anyway. You can still do traditional financing with this concept but your rate would be significantly higher but at the end of the day if you get the home you want at the monthly price that is suitable, it won’t matter at the end because you can refi when rates drop. Best of luck to you!
Hi...does this include subsidiary companies trading for example usa at 21% corporation tax? Can I move over the revenue generated in USA to another company (property investing) through holding company set up?
Ty
Will the holding company be an LLC or S-Corp?
Depends if you make over or under 50k profit annually
Simple yet effective video. Keep them coming mate 🔥
You got it!
Can you name the the same name just add holding etc
Imagine now having multiple holding companies, overseen by one large holding company, and you pay yourself as that manager .. no way uncle Sam getting his piece..
That’s in fact exactly how it’s done by all large corporations. An Umbrella/Holding Structure is for large scale thinkers who want to grow their business(es). In fact, that’s how a country in and of itself does it; a country is pretty much a giant group organization consisting of many subsidiaries. As you invest in more subsidiaries with your main holding company, the main holding company acquires multiple sources of income and can reinvest those profits into any owned subsidiary. That way, the subsidiaries grow accordingly, resulting in even more profit, and you can open more subsidiaries, ending up with a giant group organization in the future.
I recommend looking up organizational charts of major corporations. It’s quite mind blowing how many companies are involved. Comcast is a great place to start, but Disney is also mind blowing
if this is true and as simple as it looks, thank you
What’s a trading company?
Just a company that is operational
👏🏿👏🏽👏🏻
Wow
Horrible advice... Folks do yourself a favor and consult an attorney...
England not USA