Structuring Your Property Business
You can invest in property ownership
in several ways, some of which will be
more relevant to your personal
circumstances than others.
Below you will find a number of the
main options with short explanations
as to the advantages and disadvantages
of each. If you would like to explore
your options in more depth please do
contact us. Be aware however that we
do not give tax or legal advice and
all information is presented for
general information only. You should
take such appropriate professional
advice as you feel you need before
making any decision about your
business.
Types of Business Structure:
|
Sole Trader |
You buy
properties in your own name
or in a business name. So
John Smith could buy in his
own name or as John Smith
Properties, or
whatever.... |
More... |
|
Partnership |
Two or more
individuals by property in
joint names or in a business
name such as Smith Brothers,
Smith Property Holdings, or
whatever.... |
More... |
|
UK Limited Company |
A company is a
separate legal entity from
its owners (shareholders) or
directors and can buy
properties in its own name
.... |
More...
|
|
Limited Liability Partnership |
A fairly new
structure which has the
benefit of a limited company
but like a partnership pays
no tax itself. Individuals
and companies can be
members.... |
More...
|
|
Offshore Company |
Offshore
companies can invest in UK
properties and in properties
almost anywhere in the world.
Care has to be taken to
ensure management is
offshore.... |
More... |
|
Offshore Trust |
Rather like an
offshore company, an offshore
trust offers a way to
minimise your tax bill. This
is a complex structure but
James Green & Co .... |
More... |
|
Pension Fund |
Having announced that as from
6th April 2006 SIPPS (Self
Invested Personal Pensions)
would be able to invest in
buy-to-let property with the
potential of getting 40%
"discount" from the taxman,
in the Pre-Budget Review on
5th December 2005 Gordon
Brown made an abrupt about
turn and called this scheme -
which he introduced -
unacceptable tax avoidance
and promptly changed the
rules .....
|
More... |
|
Property Consortium |
There are
several advantages to purchasing property as part of a consortium. Many of our
clients, particularly those with limited funds, like to be able to participate
in owning a wider range of properties than they could alone.... |
More... |
You can get more information on different types
of company and partnerships on the website of
AR Corporate Services where you can also
download a number of useful guides, including
"Why Trade as Limited Company".
|
