Should I buy two properties through a company or in my own name to make more money with £48,000 turnover (I am a 20% taxpayer)?
Arthur Weller replies:
If the gross rental income will take you above the higher rate threshold, and if you need to borrow money in order to buy the properties (and consequently pay interest to a lender), and the properties are residential so that you will be affected by 'section 24' interest relief restriction for individuals, and if you do not mind the rental income staying in the company so that you do not need to withdraw it all as dividends from the company, it is seriously worth considering buying in the company versus buying personally. However, it is still a good idea to consult a tax adviser first.