Watch This Before Buying Property Through A Limited Company

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Are you considering buying a property through a limited company? Watch this first and then decide if ltd is the right way for you or if you should buy in your personal name instead, as a sole trader.
For more tips and training, visit www.katywilsonproperty.com.

Опубликовано:

27 июл 2024

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Комментарии : 17

@sandramcintosh2231 5 месяцев назад

Great information, provides food for thought.

@dfaulkner9602 5 месяцев назад

Great video to be fair. Very informative. Thank you!

@kevinwooldridge2127 5 месяцев назад

Informative as always thank you

@MakemoneyonlineWorkfromhome 5 месяцев назад

A lot of info in such a short time willhave to watch again 🤙

@odysseasv7138 5 месяцев назад

Such a great video!!! Thanks

@pinakinpatel6968 5 месяцев назад

Very good advice.

@mubarakshams5279 5 месяцев назад

Great video

@abumyaseen 5 месяцев назад

Great video Katy, as tight as a ducks a*s, lol. 😂😂😂

@beckylee3356 5 месяцев назад

Great info thank you Katy. I currently own 4 x properties in my own name with mortgages , which works ok tax wise for me now, Ive consulted accountants and they said it was not worth transferring to a LTD Co due to the capital gains and stamp duty I would have to pay . However I would like to purchase just maybe 1-3 more properties maximum ( to top up the monthly income) and not looking to build a big portfolio nor pass on any legacy . Again with this in mind and for the reasons you have stated in your video , I dont think it would be worth me starting a Ltd Co just to purchase 1-3 properties max , also I think you pay double tax when you withdraw monthly income from a Ltd Co ?? In your expert opinion, do you have any suggestions as to how I could purchase these extra 1-3 properties in a more tax efficient way? it has stopped me purchasing anymore properties as I don't want to own anymore in my own name ( as this would not be tax efficient) and also I dont think its worth openinig a Ltd Co by the time you've paid all the extra admin fees and taken your time do do this. However I would still love to create a bit more monthly passive income from property every month. What do you think? Any feedback would be much appreciated thank you!

@Bloody_alchemy 5 месяцев назад

I'm in similar position and I'll be doing both. I have two in personal name and one via the brrr which will be in a company

@odysseasv7138 5 месяцев назад

You pay 19% corp tax to any profits as per normal on Ltd. Then if you want to pull them out(usually dividends) you pay 8-9% div tax. BUT that depends on your other income as if you are a higher bracket earner you pay 33% div tax which makes it completely not worth in that case. Also Ltd has more admin expenses, higher interest rates etc etc. Of course it ALL depends on your situation overall, tax bracket from other income, property total income and more. Best is to get advice from expert, I’m no expert. Personally I believe, especially if you are not high bracket earner that 1-3 properties in your personal name works better/cheaper tax wise. But since you are going for more it’s possible that rental income it’ll push you in high bracket(due to mortgage costs considered as profit😢) therefore you either could reduce hours at work/salary sacrifice or go for Ltd possibly. But it all depends on your situation and other incomes and plans. I want to build 2-3 properties portfolio for example and I NEED the profits pulled out each month to invest in other things and as I’m also in basic tax bracket, Ltd quite possibly isn’t the right way for me.

@beckylee3356 5 месяцев назад

@@odysseasv7138 Thanks for that info. Yes I agree, Ltd does not suit everybody. the 4 x properties in my name works fine in my own name under current tax rules but it would not work with buying anymore under my own name. My question is if i only want to purchase another 1-3 'more' properties, ( on top of what i have) is it really worth purchasing in a Ltd Co because as you say it will push you into higher tax bracket, higher accountants fees, higher mortgage rates and if my aim is to gain some extra cash flow every month, then having to pay corp tax and dividends to release the income each month too, Im not sure its worth the effort put in for the net profit that I would gain. Thats why I was wondering what Katy's thoughs were on this situation and if there were alternative options??

@odysseasv7138 5 месяцев назад

It's a bit risky in either direction I guess. If you only buy 1 more property, pointless and costly to do so through LTD possibly. If it's 3 more then maybe LTD it's a solution. I know is long but you could run example calculations of: Current Situation + 3 new properties profits in personal name, and see where that brings your TOTAL yearly income at the end, then see tax paid. Then run the same calculation for 3 properties under LTD but include higher costs(admin/accountant/higher int rates etc) and see where that leaves you after tax. Remember there are other benefits of LTD, for example you can claim more expenses and if you don't want to pull money out every year you don't pay dividend tax. It all depends on your plans. I personally found that if I go to up to 3-4 properties and still under or close to 50k job income, it's not worth through LTD(ESPECIALLY as I need all profits in my pocket to invest further[stocks etc] every month!) Over 3-4 properties I'd go LTD OR at least reduce hours at work or something like this. It's all has to do with the total(or job) income's tax bracket that section24 brings you up to.

@beckylee3356 5 месяцев назад

@@odysseasv7138 yes I agree with all of that and have run all those figures already and thats why I say its really does not seem worth it for what you get at the end of it for all the capital, time, risk and effort you put into it, hence asking if there were any alternate ways to invest in BTL properties other than just in own name or Ltd Co - there may not be ... thats why I thought I would ask the question to Katie .. she said she responds to all comments but looks like she is very busy. in the meantime I have also been doing what you are doing, investing into the stock market instead.