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Rental income in Ltd company

trc
Posts: 111
Joined: Wed Aug 06, 2008 3:07 pm

Rental income in Ltd company

Postby trc » Thu Aug 03, 2017 7:28 am

Hello, I am thinking of renting out my flat , which is owned by me with no loans on it ,the yearly income is £8,500 . I was thinking of the tenant paying this into a Limited company , and drawing £4,250 to both myself and partner in Salarys. Would this be allowed for HMRC any advice would be appreciated.

bd6759
Posts: 2273
Joined: Sat Feb 01, 2014 3:26 pm

Re: Rental income in Ltd company

Postby bd6759 » Thu Aug 03, 2017 5:13 pm

The company would need to own the property.

darthblingbling
Posts: 100
Joined: Wed Aug 02, 2017 9:09 pm

Re: Rental income in Ltd company

Postby darthblingbling » Fri Aug 04, 2017 4:46 pm

Seems overly complex for a modest income. You'd also have a CGT issue when you transfer to the property to the company.

Is the £8500 after all allowed revenue expenses?
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