Should you hold property investments in a company or in your own name?

[nmb]

As the UK government continues to attack the tax regime associated with property investments does it make sense to hold properties in a company or in your own name? Is there a tipping point after which you should switch your investments into a company?

 

[Ged Ward]

The only problem with holding the property in a company is that the company can be expensive to maintain each year by up to USD2000. If the property is of high value and brings in good rental income then yes it is. Remember to have a company for each property as if you have many properties in one company that can bring problems on disposal unless they are all being sold to the same buyer.

 

[KSH]

Agree with Ged Ward's point about 1 property per special purpose vehicle (spv). But not sure about the point around costing upto 2k to maintain. Are you refering to the costs associated with annual accounts? If so then agree these can be pricey but it may be more cost effective if you have multiple SPVs and can ask your accountant to do all of them for the same cost, after all, each rental property shouldnt be too complex a business to do the annual accounts for...

 

[Veronica]

The only problem with holding the property in a company is that the company can be expensive to maintain each year by up to USD2000. If the property is of high value and brings in good rental income then yes it is. Remember to have a company for each property as if you have many properties in one company that can bring problems on disposal unless they are all being sold to the same buyer.

The original post relates to property ownership in the UK so anything relating to properties in the US may not be relevant as laws will not be the same.

 

[Ged Ward]

Hi KSH,

May be that price in the UK but in Hong Kong it costs US2000 per year but you may get it a little cheaper.

Hi Victoria,

As im based in Hong Kong and the HK Dollar is pegged to the US Dollar people will tend to
quote a lot in USD as the rate is pegged so its clear exactly what the costs involved are. The other
currencies move against each other so quoting in those in makes these liable to change eg if i quoted
in GBP. My apologies for the confusion.

Regards

Ged