If you have a buy to let portfolio and intend to use this as a long term investment plan it’s worth considering moving your properties into a limited company scenario.
What are limited company buy to let mortgages?
They occur when you purchase an investment property in the name of your limited company, usually via a special purpose vehicle. The main reason for doing this is the tax advantages over holding property in your personal name.
Taxation planning is not regulated by the Financial Conduct Authority. Information is based upon our current understanding of taxation legislation and regulations.
Don't get caught out
It is important to note that transferring your properties is not a legal option; the properties must be sold at the market value which means some or all of the following additional costs:
- stamp duty land tax at the higher rate will be payable on the purchase by the limited company, this is because you will be selling the property and your limited company will be purchasing i.e. change of legal ownership
- capital gains tax owed by you personally when you sell the property
- early repayment charges if you are still tied into your existing buy to let mortgage.
Are you interested in a limited company purchase?
Contact us and we can discuss your options.
07977472032 or info@am-mortgages.co.uk
Send an enquiryImportant information
Some forms of Buy to Let Mortgages are not regulated by the Financial Conduct Authority.
There may be a fee for Mortgage Advice. We will confirm this before any fees are incurred and this will be a maximum of £595. Our typical fee is £295.
Some forms of Buy to Let Mortgages are not regulated by the Financial Conduct Authority.