Setting up a property company as an LTD: Save tax and secure your investments

Why set up as an LTD?

One of the most effective ways for property investors to save on taxes is by operating their business through a Limited company (LTD). Whether you’re operating as a sole trader or part of a partnership in a property business, switching to this approach could offer many advantages.

Key benefits of operating as an LTD

Running your business as an LTD can provide the following benefits:

• Limited Liability Protection (LLP): An LTD acts as a separate legal entity, this provides its owners/ shareholders with Limited Liability Protection. LLP provides a layer of protection for shareholder’s personal assets in the event of the company undercoming financial difficulties. Only the money invested into the company is liable.
• Tax savings: LTDs pay a minimal lower tax rate of 19% on profits, helping you retain more of your earnings.
• Mortgage interest reduction: You can offset 100% of mortgage interest costs unlike property held in your personal name.
• Flexibility of ownership: LTDs can more easily transfer ownership shares, making it simpler to bring in new partners or investors as your business grows.
• Enhanced business status: LTDs tend to have greater credibility with lenders and customers, allowing for increased trust, easier obtainment of loans and attracting venture capital.

We help you stay ahead

The property sector is constantly evolving, and staying compliant with HMRC regulations is crucial. At Elite Financial Accounting, we continuously monitor the latest tax rules and guidelines to ensure that your property company remains as tax-efficient as possible. We invite all our clients to visit us for an initial, informal chat to discuss the best strategy for setting up and running a property company. Whether you need detailed tax advice or want to explore your options, our team is here to help.