Best Accountants in Ipswich

Opening a Limited company for buy to let property? There are several reasons why you might consider opening a limited company for your buy-to-let property: 1. Tax efficiency: By owning the property through a limited company, you may be able to take advantage of more favorable tax treatment. For example, the company can claim corporation tax relief on mortgage interest payments, which are not available to individuals. Additionally, rental income is taxed at the corporate tax rate, which is generally lower than the personal income tax rate. 2. Limited liability: As a limited company, the shareholders (i.e. the owners of the company) are generally not liable for the debts of the company beyond the amount of capital they have invested. This means that your personal assets are protected if the company is unable to pay its debts. If the company were to be sued, for example, the assets of the company (including the property) would be at risk rather than your personal assets. 3. Separation of ownership and management: By setting up a limited company, you can separate the ownership of the property from its management. This can be useful if you want to bring in additional investors or if you want to manage the property remotely. 4. Easier to obtain financing: Some lenders may prefer to lend to a limited company over an individual. This is because a limited company is considered to be a separate legal entity, which makes it easier for the lender to pursue legal action if you default.