I have decided not to place my properties into a ltd company because of several reasons
- I'd have to pay Capital Gains Tax and stamp duty Land Tax for the privilege of transferring my current properties into the company, this because it's treated as a sale and purchase to another 'entity'.
- The allowance for dividend income has been restricted to £5,000 per person.
- I can't use my CGT allowance within the ltd company structure.
- The cost of finance tends to cost more than standard BTL mortgages and the choice is more limited.
- The comparative accountants fees make my eyes water.
- I also don't want to have to provide all the annual reports required for companies house.
But for some, the pros out-way the cons and what suits me isn't necessarily right for you. This is definitely a question for your accountant and no one rule fits all. There are many tax and cost implications that need to be considered and I urge you to get expert advice from more than one source before making your decision. Here's a link to the Governments website to explain more about your responsibilities when running a limited company.