First time investor to a BTL planning for long future and father retirement

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    First time investor to a BTL planning for long future and father retirement

    Hello I’m starting to have to plan my fathers retirement and we have a good amount of deposit to invest in a property to rent and I’m trying to find the best way to set this up whether it be as a limited company or as Individual I am thinking more towards limited company because when my father comes up for retirement it’s far easier if I already own a fair share of the property with both invested in and eventually when he does pass away I’m not gonna be fighting with other siblings for the asset
    Also I was considering for him to take a wage out that limited company as it be far easier and simpler for tax purposes and if we then choose to invest in further properties nothing in theory changes I know that he will be subject to income tax on his earnings for the limited company and potentially any dividends given out I’m also aware that it’s harder to get finance as a limited company I’m just interested to know if if I have over thought this and if there is a simple way of doing it given all the circumstances

    #2
    The first question you should ask yourself is why have I chosen this investment over other forms of investment, including those that would be tax free or designed for pensions?

    And if you don't have an answer, you've not really made a decision.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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    • Reply to Expenses off-set against income tax
      by jpkeates
      If the maintenance, insurance, certificates and other stuff is costing more than £4.5k per annum you should probably sell the property.
      That mortgage is ludicrous for a BTL, unless the value of the property and the market rent are completely out of whack or it's not interest only.
      29-07-2021, 09:07 AM
    • Expenses off-set against income tax
      by xenoid
      Hi All, I have a question that might have been asked but could find it here.. I am an overseas landlord with only one buy-to let property in the UK. My monthly expenses are more than the rental income so on an annual basis I make a loss. I understand that these expenses can be claimed against tax and...
      27-07-2021, 12:54 PM
    • Reply to Expenses off-set against income tax
      by xenoid
      monthly rent 1250 ... buy-to let mortgage 873.12 - certificates (elec, gas, PAT, Fire and risk, EPC), maintenance and repairs, council landlord licence costs, service charges, landlord insurance.... all of these quickly erode the rental income.. mortgage is high since is an overseas Buy to let mortgage......
      29-07-2021, 08:24 AM
    • SPV and Leases
      by Thurrock1
      My husband is one of three directors of a limited property development company that has converted a house to 3 flats. The flats are currently rented. Please can someone tell me if, in order to get leases on the flats, we have to at the same time put them into an SPV. To put them into an SPV will...
      28-07-2021, 20:38 PM
    • Reply to SPV and Leases
      by jpkeates
      There isn't really a black and white answer to the question, which I think if because there's a shed load of information missing.

      If your husband is retiring from being a director of a company, there's no need for anything else to happen - so I suspect that he wants to exit an existing...
      29-07-2021, 08:18 AM
    • Reply to Expenses off-set against income tax
      by jpkeates
      I can easily imagine that a couple of costly repairs might knock a property into a short term loss, but a rental property let out at a rent that doesn't cover the basic costs of operating it long term sounds very odd indeed.

      How on earth can that happen?...
      29-07-2021, 08:13 AM
    • Reply to Expenses off-set against income tax
      by Neelix
      How many years have you been running at a loss?
      29-07-2021, 07:16 AM
    • Reply to Expenses off-set against income tax
      by AndrewDod
      Sounds like a great investment. HMRC will definitely be exploring those expenses in due course....
      28-07-2021, 20:45 PM
    • Reply to Expenses off-set against income tax
      by theartfullodger
      Why run a business at a loss ?
      28-07-2021, 16:34 PM
    • Reply to Expenses off-set against income tax
      by xenoid
      thank you for answer the first two parts of my question. There was no need to buy a book on tax after all.

      as for your response below.. no, i submit tax on an annual basis. rent is paid in UK bank account. All expenses are listed in tax submission. all legal and above water. ...
      28-07-2021, 15:50 PM
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