Moving your property into a Limited Company!
We have partnered with GetGround to offer advice to our landlords and investors
At GetGround they specialise in setting up and running UK Limited companies to purchase UK buy-to-let properties. All their companies have high quality legal documents, and are designed to be tax efficient and work with mortgage lenders.
Their service includes:
- setting up a UK limited company for our customers
- providing a company account
- coordinating with our customer's lawyers to purchase their property into their company
- doing everything required to run their company (including accounting, tax filing, legal documents, secretarial work and registered office)
Their fees for all the services above are a one-time sign up of £149* / £499* (exc vat) and monthly subscription of £20 (exc vat) per company. Effectively our customers can run their entire company for 12 x £20/ month = £240 year. This is 10x more cost effective than alternatives in the market.
They can set up a company and execute all legal documents in as little as 20 minutes and everything can be done online.
The benefits of using a company to purchase UK buy-to-let property include:
- Tax efficiencies
- Limited personal liability
- Easily buy and sell with others
- Improved inheritance planning
- Well developed mortgage markets
On tax efficiencies, they have audited examples showing how post-tax profits can increase by 52% to 66% by using a company with GetGround vs. owning the property in personal name.
The main tax advantages come from:
- the ability to deduct mortgage interest from your UK tax bill (with personal ownership you only get a basic rate credit)
- efficiently take rental income from your company by means of owner loan repayments or dividends
- lower capital gains tax on sale of shares vs. property
