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Limited company and Inheritance Tax.

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Does anyone have experience on forming a Limited company (SPV) with family (with an eye to reducing future IHT?).

My wife and I plan on purchasing 4-6 buy to lets in the next 2 years. We want to form the company with our 2 adult children as shareholders or even directors.


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I know you said adult children, but just one thing i'd like to make you aware of is that if you have children as shareholders / directors etc, it will impact anything for future education ( like uni), if one of your children has relationship issues ( depenadant on if married etc) and they wont be able to make use of any first time buyer schemes..

however you can have alternitive ways of employing them wihtin your company or certain terms on dividends which may be worth looking into..

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Thanks for the responses Mark and Colenago. We're not looking to employ our kids in the company. Just have them draw down dividends in the future. The initial advice I had re first time buyer breaks on Stamp Duty is that they would still be eligible (if my wife and I were the directors and they were the shareholders). I guess I'll need to look into that in some more detail. Appreciate the look to buying through a company. Had a good look at the info.

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