Ltd company

[chris09m]

Currently, I own 4 properties in my name as a sole trader.

I am looking at buying more but would like to do so via a limited company is this possible?

Any advice very welcome.

Especially pros and cons / tax / recommedations re lenders etc.

[Richlist]

This question comes up regularly.

Its a complex subject but basically with just a few properties its not, in my opinion worthwhile.

Any profits (income less expenses) belongs to the Ltd Co so,it pays corporation tax on it at 20% up to £300,000 of profits. If you want to take money for yourself thats your income and subject to income tax @ 20% or 40%. So, you are likely to be either worse off or no better off but with a load more work associated with running a Ltd Co.

Why do you want to do it ?

[Guest caravanj]

Currently, I own 4 properties in my name as a sole trader.

I am looking at buying more but would like to do so via a limited company is this possible?

Any advice very welcome.

Especially pros and cons / tax / recommedations re lenders etc.

I was the managing director & company secretary for a small electrical installation company & it wasn't at all difficult. The main thing is to that you have strict deadlines for filing the company's Annual Return & Accounts but virtually everything can now be filed online. You are also required to hold minuted meetings which can be as simple as a few lines on a sheet of A4.

The main advantage is that if it hits the fan you don't lose your personal assets or get a bad credit rating since it's the company that goes bust & not you so if a T lost £20,000 of goods through an electrical fault he'd be able to sue the company but not you.

However, some lenders may require you to put up your personal assets as security.

[Richlist]

I currently hold two directorships, one of them is a property management company which has a sizeable turnover.

But, I wouldn't dream of putting any of my residential property into limited liability....to many downsides.