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Where Taxpayers and Advisers Meet

First purchase via Ltd company

Joined:Mon Jan 17, 2022 11:40 am
First purchase via Ltd company

Postby Bigchunks229 » Mon Jan 17, 2022 11:58 am

I have a few properties in my own name and to stay the most tax efficient I have set up a ltd company to continue buying property.
I am currently in the process of buying my first property via this method. I am using 50k from my personal account to purchase the property, once the company is making money can I start to withdraw the 50k back to my personal account? Is it this simple

Joined:Wed Aug 02, 2017 9:09 pm

Re: First purchase via Ltd company

Postby darthblingbling » Mon Jan 17, 2022 1:21 pm

If the company is buying the property then it needs to come from the company's funds not yours. The company is a separate legal entity to yourself so make sure the purchase is being done in the company name and not yours.

In terms of the £50k, in theory you can loan the company the money and then yes the company can repay the capital later. Could even consider charging interest as a tax efficient way to extract profits.

Best you get some tailored advice as it seems you've gone head first into this thinking ltd companies are automatically the tax efficient option, when that's not always the case.

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