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Setting up a company


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I'm thinking of moving in to buy to let, and have been told that it may be more tax efficient to do it all within a company, and pay myself dividend income from that company. Anyone got any experience of doing this?

Currently I'm a higher rate taxpayer, although I don't expect to be in 2010/11.

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We've had this one recently - last 6 months - so look back in the replies from our tax expert Plym 77.

I think the answer was no it isn't unless you are going to buy a large portfolio suddenly and you already have a lot of investements.

Mortitia

Thanks for keeping some order in the forum Mortita !

Property Management Software - http://www.property-management-software.co.uk

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It's worth noting that many real estate investors set up companies to hold real estate in for liability reasons, not tax reasons.

For example, I actually pay a lot more in accounting fees, entity maintenance fees, taxes, etc to own my rental properties under LLC names, but (theoretically) I'm less vulnerable if a tenant decides she doesn't like the terms of my rental agreement and sues me.

Just thought it'd be worth mentioning, I'm not advocating either way.

Best of luck with your new rental investments,

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