Are High Taxes Eating Into Your Rental Profits
Managing a property portfolio can be financially draining with high income tax rates, capital gains tax, and restrictions on mortgage interest relief. Many property owners find their rental profits significantly reduced, leaving them frustrated and searching for a solution.
Incorporate Your Property Portfolio with JK Accountants
Owning your property portfolio through a limited company offers significant tax advantages:
- Lower Tax Rates: Profits are subject to corporation tax at 19% for profits below £50,000, compared to income tax rates up to 45%.
- Full Mortgage Interest Relief: Unlike personal holdings, limited companies enjoy full mortgage interest relief.
- Tax-Free Reinvestment: Keep rental profits within the company without incurring personal tax liability.
Why Choose Incorporation?
- Tax Savings: Profits subject to corporation tax at 19% (below £50,000) or 25% (above £250,000), instead of higher income and capital gains taxes.
- Mortgage Interest Relief: Full relief available against corporation tax.
- No Personal Tax on Reinvested Profits: Reinvest rental profits within the company to grow your portfolio without incurring personal tax.
Simple Steps to Incorporate Your Portfolio
- Initial Consultation: Discuss your portfolio and goals with our experts.
- Tax Assessment: We evaluate potential tax savings and costs.
- Prove Business Existence: Assistance with partnership requirements and documentation.
- Incorporation Process: Collaborate with solicitors and lenders to ensure compliance.
- Ongoing Support: Receive continued tax and financial advice to optimize your portfolio.
FAQs
What are the costs involved in incorporating a property portfolio?
The costs can vary depending on the size of your portfolio and the complexity of your current structure. Contact us for a personalized estimate.
How long does the process take?
The incorporation process typically takes a few weeks, depending on the preparation of necessary documents and coordination with solicitors and lenders.
What are the long-term implications of incorporation?
Incorporating your property portfolio can lead to significant tax savings and better financial management, but it also requires ongoing compliance and corporate governance.
Ready to Maximize Your Property Profits?
Book Your Free Consultation Today
