Benefits of Buying Property Through a Limited Company

Have you noticed more property investors are buying through limited companies? It’s not just a trend - it’s a smart strategy for building wealth and reducing taxes.

If you’re serious about property investment, this could be the game-changer you’ve been waiting for.

Property for sale - Buying through a limited company

Benefit from lower tax rates when buying property through a limited company

One major benefit of a limited company is lower tax rates.

• Personal property ownership means rental income is taxed at your personal income tax rate, which can reach up to 45%.

• With a limited company, profits are taxed at the corporate rate of 19%-25%.

This difference keeps more money in your pocket every year.

Interest rate relief

Tax law changes have made it harder for individual landlords to deduct mortgage interest.

• Limited companies, however, can still benefit from a 100% of mortgage interest deduction, reducing taxable income and improving cash flow.

This makes a significant impact on profitability.

A growth-friendly approach within a limited company

Want to grow your portfolio faster? Limited companies make reinvesting profits easier.

• Reinvest tax-efficiently: Profits can be used to buy more properties without personal income tax penalties, letting you scale your portfolio faster.

This approach allows you to scale your portfolio faster while preserving valuable cash flow.

Long-term wealth protection

A limited company can help secure your legacy.

• Properties held within a company offer more flexibility for reducing inheritance tax on assets passed to loved ones.

  
  

This structure is ideal for investors thinking about the future.

Is it right for you?

If your goals include:

• Building a portfolio

• Reducing taxes

• Creating a financial legacy

  
  

Then the limited company structure is worth considering.

Final thought:

the benefits of buying property through a limited company are a powerful way to maximise growth, reduce taxes, and protect your wealth. Start exploring today to secure your financial future. While it has its complexities, consulting financial and legal advisors can help you make the best decision.

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