What is a property group? This is a group of companies that
The only exception being a joint venture company where a smaller percentage such as 40% or 50% may be held.
- The companies have Limited Liability so it restricts your risk and helps you to manage the impact any issues would have on your personal position
- When using a corporate structure you can control your taxes by restricting the money you take out of a company through salary or dividends.
- There is the ability to plan your taxes so you pay the minimum possible including capital gains tax and inheritance tax
- You can utilise the benefits of Group Loss relief where losses in one company within a group can be passed to a profitable tax paying company in the group.
- You can split projects into different companies to manage the risks. This is great if you are doing developments or working with a number of business partners.
- The more companies you have the more accountancy fees you will incur to keep them up and running.
- There will be greater running costs and a greater
- There are fewer choices of lenders when completing your projects,
howeverthere are more lenders coming to the market all the time.
Do I need to set it up like this from the start or not?
You can set up the structure at the beginning of your property journey or you can evolve into this type of structure over time. Either is an acceptable approach. The one drawback is that
If you would like to discuss the best structure for you and your property journey then talk to one of our property experts.
April 3rd, 2019