It can be easy to only look at one aspect positive or negative of incorporation but you need to review all of the financial implications before you make a decision and Shaz shares some of the pros and cons of incorporating a property portfolio.

This episode provides a great overview of what you need to be looking at and reviewing before you make a decision, so it’s a must-listen for anyone thinking about whether to incorporate or not.

 

KEY TAKEAWAYS

• Make sure you can demonstrate you have a business. you need to have a portfolio and be spending in excess of twenty hours per week on your business.
• Your business should be managed by you not a letting agent.
• Being limited means you can claim 100% of your interest costs.
• It’s possible to claim section 162 incorporation tax relief.
• If you are a partnership you won’t have to pay stamp duty if you meet the rules.
• When you move properties from your own name into a limited company you have an uplift in the base cost of those properties.
• If you have a limited company you have limited liability.
• When you have incorporated you can look at inheritance tax planning.
• Include legal and valuation fees into the cost of incorporating.
• Be aware that incorporating means less privacy about your portfolio.

 

BEST MOMENTS

‘Think about the increase in the base cost’

‘You are in control of how you take money out of the company and it’s usually more tax-efficient’

 

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 consultation 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.