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Limited Company Funds Transfer to BTL SPV

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Hello Everyone,


I am planning to embark on a BTL journey via the SPV company route. 


I have got enough funds in my limited company to cash buy 1-2 properties but am a bit unsure about the best possible way to transfer the same into the new SPV.


Any advice would be highly appreciated.


Thanks in advance,


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Hi Arunjay


One method is to make an inter-company loan where you transfer the funds between the two company accounts. You will then charge interest at commercial rates, usually 2.5-3.5% above BOE base rate, so the interest expenses will be deductible from the SPV, and the interest received will be added to the income and taxable on the existing limited company at the corp tax rate. 


Alternatively, you can create a holding company that sits over both the existing limited company and new SPV. There's a separate thread on that here. However, with extra company, means extra costs/fees, so you'll have to weigh it up based on your situation.

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