Company or Personal Name for Property

[mdalton444]

Hi,

I am looking for a bit of advice on the below:

I own my own house with a mortgage, and I also own 5 other rental properties.
3 of the 5 rental properties are owned half/half with another partner and 2 of them are owned by me.
I do not have any mortgages on any of the rental properties (I do have a mortgage on my own house).

The properties are in my own personal name and also jointly with my partner for the other 3 properties.

What is the best way to set a company up to make sure everything is above board?

I want to keep the properties in my own name, but would like to set up a company to do any renovation work and collect rental income, and I wish to VAT register the company to recoup vat on building materials etc.

Would a new company I set up be allowed to receive the rental income from properties in my personal name?
Could anyone kindly point me in the right direction with the best way to set this up?

Many thanks in advance!

 

[FWL]

This one looks quite complicated as a transfer of property into your name would, I think but you need to check, trigger a sale in the eyes of the law. That may well expose you to some sizeable capital gains depending upon the level of profits you crystalise. As far as the company receiving rent from properties in your name, I am not sure how this would work as you could "undertake work" for the rental income but it may be seen as a way of avoiding income tax on your personal income.

The bottom line, you need to take advice off an accountant to ensure you are covered and doing the right thing.

 

[mdalton444]

This one looks quite complicated as a transfer of property into your name would, I think but you need to check, trigger a sale in the eyes of the law. That may well expose you to some sizeable capital gains depending upon the level of profits you crystalise. As far as the company receiving rent from properties in your name, I am not sure how this would work as you could "undertake work" for the rental income but it may be seen as a way of avoiding income tax on your personal income.

The bottom line, you need to take advice off an accountant to ensure you are covered and doing the right thing.

Just to clarify, the properties are already in my own personal name. I do not wish to transfer them into any other name but I want to set up a company so I am all covered and also able to claim VAT back for renovations I do to my own properties.

Any advice is greatly appreciated!

 

[diyhelp]

The only issue you might have is paying the rental income into the company - this could be seen as avoiding income tax on your personal assets. However, you could always inject the rental income into you company (received in your name though) as a loan and repay the loan when the company have banked enough profits in the future.