Buy to Let on Property Company or my personal name?

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    Buy to Let on Property Company or my personal name?

    Hello
    I'm in two minds whether to buy a property on my name or my company
    After i develop it, i will make a £250,000 equity uplift - i plan to add a large loft and large rear extension
    It would be a big property, so i could also rent it out as rooms, generating a healthy yield
    So i'm in two minds
    Here are the details
    Acquisition Price: £700,000
    Borrowing: £500,000
    Deposit: £200,000
    Monthly interest free mortgage: £1000pm
    Rentals as rooms: £5000pm

    What tax would i be paying on my name? I know for the company its corporation tax

    I know i'd pay more tax in my name, but with the equity uplift i could re mortgage and acquire another property
    But is it worth the extra tax i'll be paying?
    Thoughts please, thank you v much...

    #2
    Your post doesn't provide enough info.

    You need to say how many rooms you are looking at renting out. Is the room rate £500pm? You've posted £5k per month.
    You haven't given figures for your conversion/developing costs.

    Comment


      #3
      You need also to indicate if you hold any other BtL properties, whether you are a higher rate tax payer, have you established whether the local authority will grant a potential HMO license.

      I agree with Claymore that there is a notable lack of information to enable a more qualified response to be given.

      Comment

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