Most efficient tax set up

[u768211]

Hi everyone,

Newbie question here.

My wife and I are planning on selling our home, and downsizing slightly. This is due to the arrival of our baby daughter, and the related nursery fees!

I would like to lower our risk on the main home, and therefore would like to extract some of the capital on our home, with a view to buying a flat to rent out when the housing market calms.

I would not look to gain an income on a rental basis, I would just be looking to offset the mortgage payments. But, I would be looking to realise a gain on the property after x years, with a view to increasing our property portfolio via remortgage, and new purchases.

What is the most tax efficient way to do this? The question in short, How do I avoid paying as much tax as possible? PLC, LTD, LLD, or just owned by us? I have heard that as a company you can just put the profits back in to that co. and then pay yourself dividends, which are only open to NI payments?? Is this correct, surely too good to be true?

Apologies for ignorance.

Any advise greatly received.

James.

[u768211]

[ editor's note: Sorry James, as every advice is based on information given, it would be dangerous to let people change the information they gave once someone has already replied based on the previous information. ]TYPO ALERT! > LLP rather than LLD (any way to edit posts on this forum?)

[Bridget Jones]

Your would need to seek professional advise as for the tax implications. IR35 rules may come into plan under the plan you suggest.

[u768211]

Thanks,

Anyone got any other advice on this?

What would be the best set up with the situation that I have outlined? I understand that I would need to get specific advice before I commenced on a course of action. But would like to use these forum resources to get an idea of my options.

Thanks,

James.