Thanks Shaz. I just seen your ‘cons’ video and then watched this. What about just having two separate unlinked companies and then just loaning from one to the other? Advantages or disadvantages of doing it that way (and cheaper in accountancy fees etc)? Ie in your example, why cant money in company A be transferred to B, C, D in terms of a loan (rather than dividend)….?
It actually explains this at 4:50, I've started out doing this and definitely restricts you to specific lenders - many wont accept intercompany loan as source of funds for the deposit. I'm looking to move to the holding company method to avoid the intercompany loan and have to charge interest.
Great contents, Shaz, thanks so much! So Holding company structure would not benefit having investment companies within the structure? This is really interesting (to me anyway 😁) I am so relieved I can hear your commentary very clear! 🤩
Would a parent shell holding company with a child Serviced Accommodation Ltd company and a separate child BTL/HMO Ltd company be consider an investment or a trading business?
Fantastic content
Thank you I am glad you find the content useful
Presented clearly, thanks a lot Mr Nawaz
You're welcome. Thank you for watching
Thanks Shaz. I just seen your ‘cons’ video and then watched this. What about just having two separate unlinked companies and then just loaning from one to the other? Advantages or disadvantages of doing it that way (and cheaper in accountancy fees etc)? Ie in your example, why cant money in company A be transferred to B, C, D in terms of a loan (rather than dividend)….?
It actually explains this at 4:50, I've started out doing this and definitely restricts you to specific lenders - many wont accept intercompany loan as source of funds for the deposit. I'm looking to move to the holding company method to avoid the intercompany loan and have to charge interest.
Great contents, Shaz, thanks so much! So Holding company structure would not benefit having investment companies within the structure? This is really interesting (to me anyway 😁)
I am so relieved I can hear your commentary very clear! 🤩
Yes, best to avoid investment company in the holding group, otherwise you risk losing trading status.
I understand intercompany dividends are tax free but won't you have paid corporation tax in the company paying the dividend already?
Yes, because if it makes a taxable profit, then tax is paid accordingly.
Ahhhhhh! Now I get it!!! 👍🏡🏘️🏠
BRILLIANT
Would a parent shell holding company with a child Serviced Accommodation Ltd company and a separate child BTL/HMO Ltd company be consider an investment or a trading business?
I answer your question in this live - th-cam.com/video/lJFH4KLv-hQ/w-d-xo.html
@@ShazNawaz thanks so much. A very clear response. Cheers