How To Tax Efficiently Structure A Property Flip

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[@joline2730]

Extremely interesting discussion. I learned that VAT is not claim-backable ‼️ Not that I've ever earned enough to register for VAT. All I have ever done is Buy, Refurb and Sell on, so I now know where I stand. 👌💯

[@JustinWilkins]

👏👏

[@thepropertyflipper]

Flip in a company and eventually you will need to withdraw the profits - if you have other employment this can be very painfully tax wise as you will get tax on any dividends withdrawn. Better to put the profits into Directors pension (less corp. tax to pay then).

[@JustinWilkins]

Good tip, thanks!

[@magicaljewels295]

Sounds like a complete dogs dinner. No point investing in the UK with those rates and having to justify to the tax man. I’ll sit home and do as most of the UK does - looks more appetising.

[@JustinWilkins]

😂 as correct as you are about the UK tax system, sitting at home doing nothing is just a waste in my opinion. Why live an average life like that - I’d do anything to make sure I don’t (even if it means paying silly tax rates).

[@D0MIN0E5]

Great video, it would have been interesting to hear from Peter what his thoughts on a group structure would be for holding the different Ltd companies, what the pros and cons might be

[@JustinWilkins]

Yes great suggestion! I’ve found that for the most part a group structure is usually always a benefit, the main negative is that lending can be trickier / more hoops to jump through

[@Air51]

Got my 2nd flip going live for sale tomorrow and then was looking for a way to speedup flips and also was looking at buying and holding uplifted properties with more than 5% capital growth.
I'd be happy chatting about using my capital to renovate at 50/50 as long as it brings in around £50k net (after tax etc unless we keep the profits in the company) per year. Who do I talk to Justin?

[@liszaf3976]

Really informative thank you 😊

[@JustinWilkins]

Glad to hear it 🙌

[@fivestars9285]

With each renovation property bought in a separate company, could one renovate then sell the company including its assets (ie. the property) so the buyer pays shares stamp @ 0.5% and avoids SDLT?

[@JustinWilkins]

Yes my understanding is that there is currently a market for that, meaning you can sell the company with a property inside it and the buyer avoids SDLT, that could well change in the future.

[@kevinwooldridge2127]

Love these interviews with Peter, so knowledgeable and has enabled me to learn a thing or two.Thanks

[@JustinWilkins]

Great to hear, thanks Kevin!

[@nickchandra4890]

Even for a basic rate tax payer it is better to put the property in a ltd company because interest is tax deductible unlike for an individual. Please check with Peter on this.

[@Deathrow2493]

We're looking to currently either Flip or rent out and then refinance a property- we're both 20% tax payers and we're also unsure of this. We were thinking the first 1 or 2 BTL properties we'd do in our personal name and then after a business but we're not 100% sure.

[@nickchandra4890]

@@Deathrow2493 Get some accounting advice. Everything is tax duductible including the interest in a Ltd company. If you make losses those losses can be carried forward to setoff against future profits. If you are planning on doing this as a business do it as a Ltd company. There is another advantage if you decide to sell later on. The new buyer can buy the Ltd company from you and not the property and save stamp duty etc. He is then buying your shares in the company from you not the property itself but obviously it will go to him as the property belongs to the company. It is even better to have one limited company per property as if you want to sell a property you can just sell that Ltd company to the new buyer. This tax accountant should be discussing these issues here. I am a bit surprised.

Great discussin. Perhaps you’d make a video on how you were able to manage all the works in Liverpool from 5hrs of drive 😎

[@imranahmed6625]

Thanks Justin another informative video.
I offered on my first investment property would you recommend any solicitor for buying in limited company
Thanks

[@Carl-tv2ew]

Thanks for advising only set up SIC as BTL, after 1st property do you have to create spv to split then under the company group
Cheers guys great video again

[@sharalsmith]

I had so many questions on this. I can't thank you enough for sharing!

[@JustinWilkins]

Awesome to hear 🙌🏠

[@jigerkijeet]

Very informative

[@JustinWilkins]

Thanks 🤝

[@123sumom]

Amazing thanks

[@JustinWilkins]

💪💪