Last week we had the second event from our property seminar group with Circle2Success. This session was focused at investing in property and considering whether that should be done in a company as a vehicle.
George Tatham-Losh, Director of Move Property Sales & Lettings, initially gave an update on the property market locally, providing great tips and ideas about how to identify a potential property by looking at some of the older listings on Rightmove or Zoopla showing the housing stock that is taking longer to sell. He also provided some insights into some of the data sources available to agents which show historic house price movements whilst the property has been on the market and the respective dates of any price changes which can also be a useful tool in searching for your next investment.
I then covered the benefits and bear traps of incorporating your investment property portfolio. Running through the main tax implications of holding property in a company, the challenges with incorporating an existing rental business into a company and then identifying how shares in a property investment company would be handled. I covered Corporation Tax, Capital Gains Tax, Stamp Duty Land Tax to name a few. I also ran through the potential benefits of using a Family Investment company for longer term planning identifying some of the key documents you would want to have in place (for example a shareholders agreement and clear rights attached to shares).
Finally, Lawrence Smith and Faisal Mulla of Sterling & Law provided a summary of potential finance available to investors, citing some recent deals as the property market starts moving again post Coronavirus. They also identified that there remains an appetite for lenders to provide funds in most circumstances and bridging loans can be an effective way of having short term funding in place.
You can watch the recording of the event on the C2S website – click here. The event was well attended, and there are plans to run further events in the coming months.If you are interested in attending please let us know and if you would like to attend one of our free advice clinics to discuss tax matters in respect or your property or other affairs please contact us.
Rob Case is a Partner and head of Tax – he is happy to talk through any concerns you may have at an advice clinic. To book an advice clinic please call 01242 776000 or email firstname.lastname@example.org. Currently they are being held by phone or video call.