BTL through LTD company

[Phooey]

Is purchasing residential BTL/s through a LTD company now a better option than doing so as a sole trader with recent tax changes? Corp Tax currently 20% (18% by 2020) seems the biggest advantage?? Is a BTL mortgage really much harder to obtain via a LTD company?

[Eric Mc]

Corporation Tax may be only 20% but you still have to pay personal Income Tax (and possibly NI) on money you take out of the company.

[Phooey]

Eric Mc said:

Corporation Tax may be only 20% but you still have to pay personal Income Tax (and possibly NI) on money you take out of the company.

Yes I was aware of Income Tax. Dividends?

I already have a LTD company (nothing to do with property) and thinking of buying a residential BTL/s through my company - fast forward 20/25yrs to retirement and use the rent from property/s to fund retirement. Already do the ISA/pension thing so BTL would be another egg in the basket. I appreciate there's too many variables on a forum to give a definitive answer but is this a better option than someone paying themselves today more money from the company to attract a higher rate of Income Tax and NI along with the new BTL rules on Mortgage Interest Rate Relief scales? Only thinking aloud atm but might look further into this in the next couple of years if the company has some money sitting in the bank.

Cheers

[Eric Mc]

Why did you say "Dividends" with a ?

[Jockman]

Go for it. We did.

[jaisharma]

Does the first property in a Ltd co avoid the 3% extra stamp duty (assuming you already have one personally?)

[Rangeroverover]

Wait for the autumn statement I suspect many changes, hopefully for the better, on the way

[Jockman]

jaisharma said:

Does the first property in a Ltd co avoid the 3% extra stamp duty (assuming you already have one personally?)

Only in the unlikely event that the owners of the Ltd Co do not have personal properties.

[jaisharma]

Thank you

[GT03ROB]

Rangeroverover said:

Wait for the autumn statement I suspect many changes, hopefully for the better, on the way

What changes are you expecting??

[Jockman]

GT03ROB said:

What changes are you expecting??

Eradication of the Pensions Taper.

Removal of the new Dividend Tax Rate.

Removal of the Enhanced Stamp Duty Rate.

Increase of the Annual Pension Contribution Allowance.

Tax hikes on all non-doms or anyone that works in the oil industry, especially Kuwait.

World Peace.

[dazwalsh]

Jockman said:

Eradication of the Pensions Taper.

Removal of the new Dividend Tax Rate.

Removal of the Enhanced Stamp Duty Rate.

Increase of the Annual Pension Contribution Allowance.

Tax hikes on all non-doms or anyone that works in the oil industry, especially Kuwait.

World Peace.

think the last one is more plausable than the rest. i would love to see the 3% SDLT reversed but im not holding my breath, despite it being blatently obvious the reduction of the btl market through taxation does nothing but push up rents.