Buying UK Property with a Ltd Co

BUYING A UK PROPERTY IN THE UK VIA YOUR OWN UK LIMITED COMPANY

Read On To Understand The Benefits of Purchasing via a UK Limited Company

Understand why this could be a better way to purchase UK property

To determine whether this is truly advantageous for you it would be highly beneficial to get in touch with me.

The  potential realisation of total savings can be a  56-59% upside potential in profits versus direct personal purchase

General Advantages;

  • Tax efficiency
  • Ability to deduct mortgage interest amount
  • Limit personal liability
  • Estate and inheritance planning advantages
  • Multiple party ownership is made simpler
  • Easier for non-UK resident to raise mortgage finance
  • Entry costs – zero difference between personal and corporate / limited company ownership

Advantages start during ownership

  • Any individual is liable for tax on UK property – can no longer reduce mortgage interest rate from tax assessment.
  • Previously could however this allowance will be fully phased out after 2021
  • Using a Ltd Co – retain the advantage of offsetting mortgage against tax

You can take or extract profits via two methods from a Ltd Co – both at 0% tax.

  • Dividend or owner loan repayment * both zero for non-resident.

*The deposit amount is treated as a personal loan to the company and can be extracted in full at zero tax

Gains When Selling the Property;

The purchaser is not liable to SDLT  (Stamp duty land tax – UK property ownership tax)

You can sell the shares of the company = no stamp duty by your purchaser.

You could potentially increase the price or sell slightly lower for more rapid liquidity.

A more significant tax advantage  is lower capital gains tax assessment.

Selling your shares in the company is taxed at either 10 or 20% depending on personal tax bracket.

 

A typical property hold is 8 – 10 years so potential for significant savings.

 

To Re-emphasise the Main Advantages;

Extraction of profits  – save significant income and capital gains tax

Sale of property  – enhanced profit

Enhances your investment overall

 

The Route;

Setup a UK Limited with a UK company bank account

Arrange lending to be granted to the Directors via the Limited Company.

Issue :- Typically expensive creation and running costs taking many weeks.

Presenting yourself in person to open a UK bank account

 

I can introduce you to a low-cost solution whereby you can create your company via an easy to use online platform  which includes a  UK corporate bank account.

All can be complete in around 72 hrs. Follow simple steps such as upload ID etc.

You will have on-going access to an online portal to login and see all legal documentation pertaining to your property.

Your Solicitor can be given access to your platform account for easy document sharing

You can  exchange on your property in your personal name and move it into a Ltd Co.  before ‘Completion’ However at this stage you will need slightly amended legal documentation e.g. ‘deed of variation’ (for which small legal fee will be applicable).

To move into a Ltd Co. after reservation stage  – it’s very easy to make the change and zero cost if you are working with me.

You will receive  high quality company  formation documentation and set-up guaranteed

Cost £600 Set-up £288 p.a. payable in monthly instalments, this includes the basic accounting and filing for your company.

Lending  – Mortgage

Obtaining finance is also no problem  – many lenders have innovated and now are welcoming these Limited company structures, rates are competitive and very little difference in rates for non-UK residents (when comparing personal and Ltd Co. purchases).

In fact buying this way can actually enhance your ability to get a loan!

Get in touch with me to learn more.

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