Why Landlords Move BTL Property into a Limited Company to SAVE TAX | The Property Tax Show E03

Can you move your buy-to-let properties into a limited company? Will it save tax? Incorporating a property portfolio can be costly and complex, and is not necessarily right for everyone, but for many there can be significant tax savings!
In episode #3 of The Property Tax Show, Provestor CEO, James, and Head of Tax, Nadeem, explore property portfolio incorporation in more detail. including the benefits, the costs involved, routes to incorporate and the potential reliefs that you can claim to minimise tax.
► Watch Episode #1 of The Property Tax Show: 3 mistakes landlords make with limited companies: • 3 MISTAKES Landlords M...
► Watch Episode #2 of The Property Tax Show: 4 tax efficient ways to take profit out of your limited company: • 4 TAX SAVING Ways to T...
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#propertyinvestment #property #tax #landlord #incorporation
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PROPERTY TAX ADVICE:
Need one-to-one advice on incorporating? Book a personalised consultation with Nadeem or one of our property tax experts: bit.ly/3Bv1p96
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FREE RESOURCES:
Expert Guide: Transferring property to a limited company (portfolio incorporation): bit.ly/3I0xjNn
SDLT Tax Calculator: bit.ly/3pjX8Rh
CGT tax Calculator: bit.ly/34KwcD9
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PROVESTOR - THE PROPERTY ACCOUNTANTS
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[@alisahsadiq1229]

Very Informative 👍

[@provestor]

Thank you Alisah!

[@aeonlau]

How about transfer the own living house to the spv ltd, Do I have to pay Capital gain tax?

[@provestor]

Hi there, Yes, you would pay Capital Gains Tax if transferring ownership of the property to a limited company. However, you may be entitled to private residency relief. The company would also pay Stamp Duty and there are also legal fees to consider.
We'd recommend getting 121 tax advice before you incorporate. Head to provestor.co.uk for more info on our property tax consultations.

[@johnporcella2375]

If you have lived in it from the start to the transfer, then you would be entitled to PPR (Principal Private Residence) relief thereny likely eliminating any CGT liability.

[@tricksofthetrade3129]

I will give you a call next week

[@slavmarin7827]

thank you!

[@mattleelidbetter]

Hi can I ask I had a portfolio of 5 running as a partnership for 3 plus years but sold 2 of my properties last year. Can I still transfer 3 of my btl into a ltd company

[@provestor]

Hi Matt, Thanks for your question. If you're looking at getting s162 incorporation relief and SDLT relief as part of a business transfer you may be able to depending on your personal circumstance. As part of the incorporation relief you need to be able to demonstrate you're moving across a 'business'. This becomes more difficult when you have less properties in your portfolio.

[@jeffocarroll7848]

Not S.M.A.R.T?

[@123sumom]

Great video thanks very useful

[@provestor]

Glad it was helpful!

[@charlottelaw40]

If you are transferring multiple properties (20+) from a partnership to a limited company, at what cost to introduce the properties into the limited company. If there is no profit or loss, would it just be at market value at the point of transfer?
Also, where would the other side of this transaction go? Would the amount sit on the balance sheeet ?

[@johnporcella2375]

I believe you have to use market value, but get proper advice,

[@plavanvali]

I i have a property brought inside LTD already, is that adding to the 20 hours weekly work on the property businesses to incorporate my other two properties? As i have totally less than 5.

[@johnporcella2375]

The issue is whether those held in your own name are a business. Those not held by you are neither here nor there.

[@plavanvali]

​@@johnporcella2375..and what if I transfer a part of the property ownership to my company, is that considerate partnership to later fully incorporate without CGT and stamp duty?

[@SerYoga1]

Thank you 😊 please advise is it better to own properties via limited company or a trust? Many thanks in advance👍

[@Jeffybonbon]

The Majority of BTL lenders dont allow this moveing from personal to company you need to refinance to do it

[@johnporcella2375]

Is that right? I thought that they would simply swap products in porting.