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Hi all, there are 4 of us who have pooled together in order to buy some investment properties (vanilla buy to let) and we are struggling to decide on the best business structure. two of the four (one couple) are in the higher tax band and the other two (the other couple) are in the lower tax band, each couple already own a buy to let property which are staying separate and cash has been pooled to buy more. Our goal is 6 properties over the next 10 years.

My question is, do we form a ltd company and buy as a company, do we form a general partnership and buy as a partnership or do we by as tenants in common naming only one person from each coup[le of the deeds?

I have spoken with my accountant who is unable to give a definitive answer to which structure will work best and my mortgage advisor is edging towards a ltd company structure. 


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Ltd is usually the best way to go for HRT payers and multiple properties but you setup seems more complex - being able to get a mortgage is a key factor so definitly consider that angle. I suspect you need to much better clairfy 'the best structure' as that could mean different things for different people - eg wanting to take out income versus re-invest makes a difference

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I would suggest limited company might be the best option. Partnerships are transparent from a tax perspective meaning that the partners themselves pay tax based on their marginal rate. This would mean that the higher rate tax payers will pay more higher rate tax if you make a profit and it could push the other members into being higher rate tax payers too, particularly if you already own property in your personal names and are looking to scale up. The low corporations tax environment and abilty to deduct mortgage interest as an allowable expense are all good reasons to consider a limited company.


David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk



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