My wife and I are wanting to acquire some land to develop on close to our home. The land is big enough to fit our desired house, a detached house, as well as 2 or 4 semi-detached houses, depending on architect and land findings. We plan to develop all of the houses, sell the smaller homes and live in the larger one. I am wondering whether it is more tax efficient to do this through a limited company or personally, plus any other advice would be helpful. I have read about some grants, funding etc. that may may benefit us too, we live in the East Midlands
I have outlined some other key facts that may affect the outcome.
The development of the land will cost around £600,000 and the sale of the houses (based on 2 semi detached on top of ours) will be 2 x £250,000 and 1 x £400,000 - £900,000 total. We plan to keep the £400,000 ourself/ buy it from our Ltd company.
If we did this via a company we would look to reinvest any profits made in further properties to avoid corporation tax before year end.
We currently own two homes (with mortgages). A buy to let and our the house we live in.
The funding will come from family/ friends plus a loan.
I am currently earning the maximum amount through dividends from a family company and basic pay up to the 50% tax band.
My wife earns around £33,000 from her job.
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