What are the benefits of investing in property through a limited company?

January 22, 2021

If you’re buying a buy-to-let property, you don’t have to invest as an individual – you can also invest through a limited company. Doing so can speed up the investment process and also deliver a more tax efficient transaction. Here’s how. 

Taxation considerations 

Investing in buy-to-let property through a limited company can deliver a range of tax benefits. Personal ownership, for example, no longer provide the option to deduct mortgage interest from your UK tax bill. However, you may still do so if you invest through a company. It’s also possible to extract rental income via owner loan repayments or dividends, rather than paying high levels of income tax. 

Nor do the benefits end there. Buy through a company and there’s significantly lower Capital Gains Tax on the sale of shares vs the property. It’s a more profitable mechanism for managing the sale. It also results in the buyer paying lower Stamp Duty Land Tax, thus generating a price advantage for the seller. Even inheritance planning can be more tax efficient for those who choose to invest through a limited company.

“We wanted to provide our investors with maximum flexibility when it comes to how they invest. As such, we work in partnership with GetGround – an innovative tech start-up that sets up UK limited companies through which individual investors can purchase buy-to-let properties. And all at about one tenth of the usual cost of investing in this way.”

Dale Anderson, Managing Director, Fabrik Invest

Speedy investment 

GetGround sets up a UK limited company, doing everything online in order to deliver an incredibly fast process. It can take just 20 minutes for the team to set up the company and execute all legal documents. The usual timescale for setting up the company and having it ready for the client to invest through is one business day. 

As the entire process is undertaken online, the service is available to clients across the globe. 

This speed can be incredibly handy for investors looking to take advantage of price discounts. At The Roscoe in Liverpool, for example, prices are rising due to unprecedented demand, with 60% of the apartments sold since Fabrik Invest launched the development in October 2020. Being in a position to take advantage of discounts means acting fast and this is precisely the kind of speed that GetGround provides. 

Making investment easy

The other advantage of using a service such as GetGround to set up a limited company as an investment vehicle is that it can make the whole process much easier. GetGround can handle the opening of a company bank account (for mortgage payments, rental incomes, dividend payments and the like), provide a lawyer for facilitating the purchase process and connect investors with broker partners and mortgage lenders.

“Many buyers are turning to limited companies in order to make their investments more tax efficient. GetGround has refined the process of doing so in order to deliver an easy and convenient investment experience, which is ideal for busy investors who are short on time and want to quickly take advantage of a particular offer or discount in way that delivers numerous tax benefits.”

Dale Anderson, Managing Director, Fabrik Invest

To find out more, you can all the Fabrik Invest team on 020 8175 9891, email enquiries@fabrikinvest.com or visit www.fabrikinvest.com

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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