Whether you use a Property Company depends on a variety of factors and there is no “one size fits all” solution.
Things to bear in mind:
1. The level of your expected business profits
2. Are your business profits are treated as ‘investment income’ or trading income (see earlier blog)
3. What other taxable income do you have
4. How exposed to risk is your property business
5. How long you intend to be in the property business for……..your exit strategy is not the front door!
6. What other property activities are you engaged in
For many investors, using a Property Company can be very tax efficient.
Don’t underestimate the possibilty of paying just 20% Corporation Tax on profits and capital gains, the ability to reinvest these post tax profits, the ability to time when you take income from the company and pay income tax and finally to pass the compnay down through generations.