In this episode, Shaz shares in-depth and comprehensive answers to property entrepreneurs' questions about restructuring.

Some activities are classified as trading and some as investment so structuring your business in the right way, using investment and trading holding companies makes a huge  difference to the tax and reliefs you can claim  so this episode is a must for anyone building a successful property business.

 

KEY TAKEAWAYS

• With different property strategies, you should have different companies
• Serviced accommodation, flipping and deal sourcing are all treated as trades
• Have one holding company as the investment company, with other companies with different people as partners and shareholders
• A second holding company can be used trading doing deal sourcing, flipping and SA
• If you buy and hold property for tax purposes you have an investment company
• When you buy and sell something it’s a trading business
• The government incentivise by giving more tax relief and exemptions if you are trading
• If shares are sold in an investment company there is no entrepreneurs relief
• If 20% or more of your turnover, profit, value of assets or time spent is directly linked to the investment side of the business you will lose trading status
• A holding company is determined by the shares it has in the other companies below it

 

BEST MOMENTS

‘If it’s a trading business the first million pounds you make, you will only pay 10% tax on the shares’

‘You don’t want to lose trading status’

‘You should not mix investments and trading together’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.