Investment Advice: Transfer Current Investment Property into New Ltd Company & Purchase Additional Investments Through Same Company?

The original poster was asking about transferring one personally owned property into a company. And maybe he will have multiple properties later.

But for most people, who own one or two investment properties, it makes no sense to have the in a company.

But, as already discussed, a company structure might be more appropriate for property development, or for properties with multiple owners.

Brendan
 
BigBoots82 said:
Last time I checked the corporation tax rate on rental profit was 25% (40% if you suffer the additional surcharge in the case of closr companies). This is a significant reduction in the potential 55% personal rax rate applicable to rental income of individuals.

I've worked in legal/tax for over 15 years and never seen anyone incur two layers of cgt. People buy companies. That's life whether you like or agree with it or not.
Click to expand...
€100k property profit.

Personally owned, after tax profit is €45k in your hand.

Owned by your company, €40k in corporation tax. To extract the remaining €60k is another 55% in income tax, leaving €27k in your hand.

I'm not seeing the advantage here.
 
You must log in or register to reply here.
Back
Top