I am considering helping a family member who's marriage is dissolving. It's a complicated case involving children. The crux is they need to sell the property. But I am trying to help them stay in a house as whatever family is left. I however cannot purchase as a residential property as I have a mortgage.
I am considering incorporating a Ltd company with 3 members. Myself higher rate tax payer and two low rate tax payers. No annual salaries from the ltd.
This will be used as a vehicle to purchase the property as a btl.
I was hoping to understand a little more about Ltd vs personal.
I expect an income of 1300 pm rental from the family who will remain there.
Thus £15,600 per year. I understand this will be taxed at 20% corporation tax. Can somone explain what benefit that is against the fact you cannot offset tax on the interest payments anymore?? Never quite understood that
I assume this means £3120 tax leaving £12480 in the Ltd company. Instead of ?? If not in a Ltd company?
Can that £12480 be removed as dividends if split less than £5000 per year per director (of which there will be 3) without tax implications against it?
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