Nick Wright discusses the key factors determining when property portfolio incorporation makes financial sense, from interest relief restrictions to estate planning benefits.
Property portfolio incorporation is a hot topic currently, with various tax incentives to hold property within a corporate structure. However, transferring properties to a company presents numerous tax challenges, in particular capital gains tax (CGT), and stamp duty land tax (SDLT) (or its equivalents in Scotland and Wales). There are also commercial hurdles, such as novating mortgages and tenancies to a new legal entity.
The decision requires careful evaluation of individual circumstances, financing arrangements, and long-term cash extraction and wealth accumulation strategies.
Corporation tax benefits
The primary attraction
