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Establishing a Special Purpose Vehicle (SPV) company for your growing property business.

An SPV company is a limited company set up just to hold property. This company can only be used for property letting and no other purpose.

SPV companies can be more tax efficient than owning the property personally the main tax advantage being the ability for the SPV company to claim finance costs such as mortgage interest, as tax allowable. Unfortunately finance charges are no longer tax allowable for individuals in calculating the taxable rental.

A SPV company also allows you to tax plan your income so that you can decide when is the most tax efficient time for you to take your income from the company either as salary or dividends.

If you hold the property personally you are taxed on the taxable rental income on receipt regardless of your other income. rather than being taxed on any income received.

Another additional benefit is limited liability if the property is held in a company which means your personal assets are not put at risk if something goes wrong.

For your SPV company we offer the following comprehensive services:

Incorporation and set up:

·         Incorporation of your SPV company with Companies House.

·         Availability of company name check.

·         Referral to RBS for a company business bank account.

·         Help with setting up the company bank account.

·         Registration with HMRC for all relevant taxes.

Ongoing accountancy tax and bookkeeping:

·         Monthly bookkeeping of rental income including issuing invoices to tenants if required.

·         Monthly bookkeeping of all expenses.

·         Advice on tax allowable expenses.

·         Quarterly calculations of funds retained within the company.

·         Quarterly VAT calculations, preparation of returns and filing where necessary;

·         Completion and filing of Company Annual accounts with Companies House.

·         Calculation and completion of company corporation tax returns;

·         Companies House annual Confirmation Statement filing;

·         Property tax advice.

·         Personal Self Assessment tax return completion & filing.

·         Liaison with HMRC on both your company and personal tax affairs;

·     Free Business insurance (stc) The inclusive insurance provides £10m Employers Liability, £10m Public liability and £5m professional Indemnity cover.  Please note the SPV company would still need to provide suitable landlord insurance for the property and tenants.

·         With unlimited access to your own named Advisor, support when you need it.

Please note that your accountant’s fees are a tax allowable expense for the company.