If you own property one of the biggest decisions you must make is whether to invest personally or start your own property company. There are lots of reasons for starting a company but probably the most important one is to SAVE TAX.
In fact the potential tax savings are so large that we decided to devote a whole guide to the subject. Our analysis shows that, by following certain techniques, you could earn around 27% more profit by using a company to invest in property. Alternatively, in less buoyant times, we also show you how a property company could enable you to turn a pre-tax loss into an after-tax profit.
There are also a number of traps to avoid and pitfalls to negotiate so it is essential that you arm yourself with all the relevant facts. This guide looks at the whole picture and explains ALL the tax consequences of property company ownership.
Like all Taxcafe guides, Using a Property Company to Save Tax is written in plain English and contains numerous examples and tax planning tips. Subjects covered include:
* The latest company tax changes announced in the latest budget tax report
* Summary of all company tax benefits and drawbacks.
* A definitive answer to the "Should I or shouldn't I use a company?" question.
* How you can earn an impressive 27% more profit by using a property investment company.
* How you can use a company to turn a pre-tax loss into an after-tax profit.
* Why a company is ideal for those investing in property as an alternative pension.
* The enormous benefits of property development companies - how you can keep 37% more of your development profit by using a company.
* The tremendous benefits of the company tax regime for interest and finance costs.
* Why relief for rental losses is far easier for a company than for an individual.
* When you should NOT use a company to hold your investments.
* The many non-tax benefits of using a company.
* How to borrow money in the most tax efficient way.
* The different types of property company explained: Property investment/letting companies, property development/refurbishment companies, property dealing/trading companies, and property management companies.
* How and when to transfer existing properties into a company tax free.
* A clear and concise explanation of corporation tax and how companies are taxed.
* How companies get tax relief for capital expenditure on rental property.
* How to go about setting up your company with minimum hassle and expense.
* How stamp duty and VAT affect company investors.
* How to extract profits from your property company and pay little or no tax.
* How to sell individual properties or the whole company and pay the minimum tax.
* Possible future changes to the company tax regime and their impact on property companies.
* Plus lots more... the book tells you absolutely everything you need to know about using a company to invest, manage, develop or trade in property.
“Those who want to improve the tax efficiency of their rental investments should read Carl Bayley’s guide.” – The Telegraph
“Taxcafe’s easy to understand guides can help you through the maze.” – The Times
