H
Harryb
New Member
I would like to ask - If an amount of money taken from profits generated through rental income in an SPV is reinvested in future properties (to be owned by that SPV in order to expand the buy to let portfolio owned by the business) can it be subtracted from the company’s profits for that year meaning that this amount is exempt from corporation tax.
My logic is that it is a cost to the business and is being spent there for growth without me touching it and by keeping profits low through reinvestment I may be able to reduce my tax bill.
I have no plans to take any money out of the business, rather, to reinvest it for growth. If in the future things change and I need to take money out for any reason it will be done in the form of Director’s loans and a small amount in dividends.
My logic is that it is a cost to the business and is being spent there for growth without me touching it and by keeping profits low through reinvestment I may be able to reduce my tax bill.
I have no plans to take any money out of the business, rather, to reinvest it for growth. If in the future things change and I need to take money out for any reason it will be done in the form of Director’s loans and a small amount in dividends.
