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Hi All, 

(Please bare with me as much a complete newbie).

I am currently full time employed and intend to stay that way. However, I am looking to buy a house (first time). I’m lead to believe it’s possible to set up a Ltd Co. (reminder I’m fully employed). 

To then buy my property of myself - through my Ltd Co. 

 

1. What are the first steps I need to take, or is it something that easily done once purchased?

2. How do I release the equity of what would be my residential property, into the LTD co, and use that as a deposit? I am lead to believe that would then allow me to re-apply for a mortgage as my residential home again.. and repeat so on and so on.?

3. Main question....... IS IT EVEN POSSIBLE? 
 

any other strategies are highly welcomed!!! 
 

Thank you so much.

Sorry again for the newbie Q’s. 

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This is possible and a limited company can be tax efficient depending on your strategy. You can release equity from existing owned property and lend funds to your company for deposits. For long term investment and roll up of profits at lower corporation versus income tax rates, it often makes sense to invest via a company. Buying a property and later transferring it to a company is not always tax efficient. Companies always pay additional 3% SDLT although if you already own your own home, you will too. If you take income from the company, then there’s extra tax to think about. Limited companies have higher admin and finance costs than private landlords but tax savings sometimes negate this. You should consider your long term aim and find out what finance costs will be as well as your likely tax position before deciding on investment holding structures. Good luck!

Jerome

Jerome@TaxAntics.co.uk

www.TaxAntics.co.uk
 

 

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