{"id":3207,"date":"2011-04-20T21:06:56","date_gmt":"2011-04-20T21:06:56","guid":{"rendered":"https:\/\/www.financial-fluency.co.uk\/"},"modified":"2020-07-21T16:21:08","modified_gmt":"2020-07-21T15:21:08","slug":"property-tax-using-a-property-company-to-save-tax","status":"publish","type":"page","link":"https:\/\/www.financial-fluency.co.uk\/financial-fluency-publications\/tax-publications\/property-tax-using-a-property-company-to-save-tax\/","title":{"rendered":"Property Tax: Using a Property Company to Save Tax"},"content":{"rendered":"

Using a Property Company to Save Tax<\/h1>\n

By Carl Bayley BSc ACA<\/p>\n

\"Using<\/a><\/p>\n

\"Using<\/p>\n

 <\/p>\n\n\n\n
“Those who want to improve the tax efficiency\u00a0of their rental investment should read Carl Bayley’s guide”<\/em>
\nThe Telegraph<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n
Tax busting tip!
\nUsing a company, it’s possible to make the taxman completely pay for your rental losses!<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Contents of Using a Property Company to Save Tax<\/h2>\n

Chapter 1 Why Use a Company?<\/strong>
\n1.1 Introduction
\n1.2 Why the Government Likes Companies
\n1.3 Non-tax Reasons for Using a Company
\n1.4 Overview of Company Tax Pros and Cons<\/p>\n

Chapter 2 Plain English Guide to Corporation Tax<\/strong>
\n2.1 What Taxes do Companies Pay?
\n2.2 Introduction to Corporation Tax
\n2.3 Corporation Tax Rates
\n2.4 Save Thousands with \u2018Marginal Rate\u2019 Planning
\n2.5 Future Corporation Tax Rates
\n2.6 Paying Corporation Tax
\n2.7 Cashflow Benefits of Using a Company
\n2.8 Company Tax Returns
\n2.9 Penalties<\/p>\n

Chapter 3 Different Types of Property Company<\/strong>
\n3.1 Introduction
\n3.2 Property Investment Companies
\n3.3 Property Development Companies
\n3.4 Property Trading Companies
\n3.5 Property Management Companies
\n3.6 Companies with a \u2018Mixed\u2019 Property Business<\/p>\n

Chapter 4 Property Rental Income and Expenses<\/strong>
\n4.1 Corporation Tax on Rental Profits
\n4.2 Calculating Rent Receivable
\n4.3 Expenses You Can Claim
\n4.4 Capital Expenditure You Can Claim
\n4.5 Furnished Lettings
\n4.6 Furnished Holiday Lettings
\n4.7 Interest and Finance Costs
\n4.8 Tax Treatment of Rental Losses
\n4.9 Other Property Investment Income
\n4.10 Lease Premiums<\/p>\n

Chapter 5 Property Trading Income and Expenses<\/strong>
\n5.1 How Property Trading Profits are Taxed
\n5.2 Trading Profits versus Rental Profits
\n5.3 Properties as Trading Stock
\n5.4 Work-In-Progress & Sales Contracts
\n5.5 Capital Allowances for Trading Companies
\n5.6 Trading Losses<\/p>\n

Chapter 6 Corporation Tax on Capital Gains<\/strong>
\n6.1 When Does a Capital Gain Arise?
\n6.2 How to Calculate the \u2018Proceeds\u2019
\n6.3 How to Calculate the \u2018Base Cost\u2019
\n6.4 How to Calculate the Indexation Relief
\n6.5 Making the Most of Capital Losses<\/p>\n

Chapter 7 Capital Gains Tax on Company Shares<\/strong>
\n7.1 Introduction
\n7.2 Capital Gains Tax Rates
\n7.3 Entrepreneurs\u2019 Relief
\n7.4 Entrepreneurs\u2019 Relief for Property Investment Companies
\n7.5 Entrepreneurs\u2019 Relief and Couples
\n7.6 Holdover Relief<\/p>\n

Chapter 8 Stamp Duty for Property Companies<\/strong>
\n8.1 Introduction
\n8.2 Stamp Duty on Shares
\n8.3 Stamp Duty Land Tax
\n8.4 Stamp Duty Land Tax on Leases
\n8.5 Disadvantaged Areas
\n8.6 Linked Transactions
\n8.7 Property in Scotland<\/p>\n

Chapter 9 VAT and Property Companies<\/strong>
\n9.1 VAT on Property
\n9.2 Residential Property Letting
\n9.3 Holiday Accommodation
\n9.4 Commercial Property Letting
\n9.5 Residential Property Sales
\n9.6 Commercial Property Sales & Purchases
\n9.7 VAT on \u2018Build to Let\u2019
\n9.8 VAT on Conversions
\n9.9 VAT for Property Management Companies
\n9.10 Interaction with Corporation Tax<\/p>\n

Chapter 10 Saving Tax When You Extract Profits <\/strong>
\n10.1 Profit Extraction Principles
\n10.2 Salaries, Etc
\n10.3 Dividends
\n10.4 Income Shifting: The Gathering Storm?<\/p>\n

Chapter 11 Personal vs Company Ownership<\/strong>
\n11.1 Introduction
\n11.2 Personal Tax Changes
\n11.3 Balancing Act
\n11.4 Rental Profits Kept in the Company
\n11.5 Rental Profits Extracted from the Company
\n11.6 Basic Rate Taxpayers with Rental Profits
\n11.7 Basic Rate Taxpayers Extracting Profits
\n11.8 Making the Most of the Basic Rate Tax Band
\n11.9 Investors with No Other Income
\n11.10 The \u2018Optimum Scenario\u2019
\n11.11 Trading Profits
\n11.12 Traders with Rental Income
\n11.13 Trading Profits Extracted from the Company
\n11.14 Basic Rate Traders
\n11.15 Traders with Alternative Forms of Income
\n11.16 Traders with Employment Income
\n11.17 Traders with No Other Income
\n11.18 Capital Gains
\n11.19 Summary
\n11.20 Older Property Investors
\n11.21 Tax Credit Claimants<\/p>\n

Chapter 12 Making the Big Decision<\/strong>
\n12.1 The \u2018Big Picture\u2019
\n12.2 Types of Property Business Revisited
\n12.3 The Rental Income Position
\n12.4 Reinvesting Rental Profits
\n12.5 Capital Gains
\n12.6 Winding Up the Company to Reduce Tax
\n12.7 What if the Company Still Holds Property When Wound Up?
\n12.8 Long-Term Reinvestment
\n12.9 Retaining the Wealth
\n12.10 Long-Term Reinvestment Conclusions
\n12.11 The Benefits of Reinvestment for a Trading Company<\/p>\n

Chapter 13 The Importance of Interest Relief<\/strong>
\n13.1 Introduction
\n13.2 Who Should Borrow the Funds?
\n13.3 Borrowing to Invest in Shares
\n13.4 Borrowing to Lend to the Company
\n13.5 Corporate Borrowings
\n13.6 Deeds of Trust
\n13.7 Rolling Up Interest In A Company
\n13.8 Personal Interest Relief<\/p>\n

Chapter 14 How to Set Up Your Own Property Company<\/strong>
\n14.1 Who Can Help and How Much Does it Cost?
\n14.2 The Company\u2019s Constitution
\n14.3 Other Company Formation Formalities
\n14.4 Changing Your Company\u2019s Accounting Date
\n14.5 Dealing with Companies House
\n14.6 Statutory Accounts
\n14.7 Choosing an Accountant or Auditor<\/p>\n

Chapter 15 How to Put Existing Property into a Company<\/strong>
\n15.1 Introduction
\n15.2 Gifts of \u2018Business Assets\u2019
\n15.3 Incorporation Relief
\n15.4 Which Relief is Best?
\n15.5 Pay Now, Save Later
\n15.6 \u2018Trading\u2019 Businesses
\n15.7 Furnished Holiday Lettings
\n15.8 Tax Planning with Incorporation Relief
\n15.9 Turning Investment Property into \u2018Trading\u2019 Property
\n15.10 Property Investment Businesses & Incorporation Relief
\n15.11 Other Investment Properties
\n15.12 Stamp Duty Land Tax on Transfers
\n15.13 VAT and Business Transfers<\/p>\n

Chapter 16 Some Other Important Tax Issues<\/strong>
\n16.1 Close Companies & Investment Holding Companies
\n16.2 The Dangers of Private Use
\n16.3 Selling the Company
\n16.4 Benefits and Dangers of Multiple Companies
\n16.5 Short and Long Accounting Periods
\n16.6 Becoming Non-Resident<\/p>\n

Chapter 17 Specialised Property Companies<\/strong>
\n17.1 Property Management Companies
\n17.2 The EIS Pub Company<\/p>\n

Chapter 18 In Conclusion<\/strong>
\n18.1 Weighing it all Up
\n18.2 Future Tax Changes<\/p>\n

Appendix A \u2013 Tax Rates and Allowances for Individuals
\nAppendix B \u2013 Forecast Future Tax Rates and Allowances
\nAppendix C \u2013 Marginal Corporation Tax Rates
\nAppendix D \u2013 Connected Persons
\nAppendix E \u2013 Retail Prices Index
\nAppendix F \u2013 Short Leases<\/p>\n

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Using a Property Company to Save Tax By Carl Bayley BSc ACA   “Those who want to improve the tax efficiency\u00a0of their rental investment should read Carl Bayley’s guide” The Telegraph   Tax busting tip! Using a company, it’s possible to make the taxman completely pay for your rental losses!   Contents of Using a […]<\/p>\n","protected":false},"author":11,"featured_media":0,"parent":1079,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"pagetemplate4.php","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/pages\/3207"}],"collection":[{"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/comments?post=3207"}],"version-history":[{"count":34,"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/pages\/3207\/revisions"}],"predecessor-version":[{"id":17717,"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/pages\/3207\/revisions\/17717"}],"up":[{"embeddable":true,"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/pages\/1079"}],"wp:attachment":[{"href":"https:\/\/www.financial-fluency.co.uk\/wp-json\/wp\/v2\/media?parent=3207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}