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Which is best is a question only your accountant could answer, as it depends on other income you recieve, the rent and interest on the portfolio, and a slew of other factors you probably dont want to share online.

Should you look to move a BTL property owned personally into a company that is considered a transaction, and so CGT and SDLT would be payable, ontop of the admin fees from brokers, lawers and accountants, and the fees from SPV lenders to refinance. Its usually prohibitively expensive and out of hundreds of clients, very few have found it to be viable. There are some rare exceptions where you might be able to get a CGT exemption if you can demonstrate that its your primary business, usually by the amount of hours a week you spend managing the properties (typically 20 hrs a week consistently and you have to be able to prove that).

I recommend speaking with an accountant and perhaps forecasting roughly what you think your portfolio will be worth in the future and ask them to model the costs via both personal and SPV ownership, then speak to lawyers, brokers etc to get the costs and decide if the tipping point (SPV will always be more expensive in the short term) is soon enough to be worth it?

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker & BTL Specialist

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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9 hours ago, pavelpetkov said:

Hello everyone, let's say I own 5 rental properties. Is it better to own them through a company or as an individual. The goal is to retain as much rental (net) income as possible. Thank you :)

If you own 5 rental properties, then you will likely be a higher rate taxpayer, and pay tax at 40%. In such a scenario, a ltd co will normally be the best option. Inside a ltd co you pay corporation tax at 19%. This looks pretty good, compared to income tax at 40%. Also, Section 24 tax rises don't apply to limited companies. 

There are other things to consider, but the differential in taxes is a pretty strong reason. I wrote an article which provides full details about the differences - link here

A company is also better for inheritance tax. There are reliefs that you can claim, when inheriting a company. 
 

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Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
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