SPV as second property or draw funds and pay hefty tax

[diseasex]

Hi guys, looking for some creative ideas / answers. Yes I have asked my accountant but looking what you guys have to say on this scenario

I'm planning to move to london (higher rates for contractors and hoping that brexit will lower properties prices a bit)

I have a property already which I'm planning to keep and it's my main residence (away from london)

I intend to buy another flat in London for about 300k (on mortgage with 25% deposit).

Now the problem is majority of funds (and I will need to draw about 60000 from LTD) is sitting on LTD business account - as I didn't draw them as dividends to save on tax. So i see 2 options:

1. Create Special Purpose Vehicle and take mortage on LTD. That leads to implications - if I was living in that property would i pay my company rent? would I be liable to BIK? are there any other complications I don't know about? How much would it cost?

2. Draw money as dividend , pay dividend tax and stamp duty (£5000)

Any ideas?
Thanks,

[eek]

higher rates for contractors

???? - that was true once upon a time but I haven't noticed it since I restarted contracting back in 2011... Nowadays I can get more up north than is ever possible down south...

[diseasex]

???? - that was true once upon a time but I haven't noticed it since I restarted contracting back in 2011... Nowadays I can get more up north than is ever possible down south...

ignore rate reason , I want to live in London. Personal choice.

[stek]

Spectrum Pursuit Vehicle?

[diseasex]

Spectrum Pursuit Vehicle?

South Polar Vortex

[northernladuk]

It the property is through a company there shouldn't be a problem you paying market rate rent for it surely? Just like you would any other landlord. The SPV company is your landlord.

If you want to live in London I guess you'll be there weekends which means you'll only be able to claim 5/7ths of the rent via your LTD though.

I have a property already which I'm planning to keep and it's my main residence (away from london)

ignore rate reason , I want to live in London. Personal choice.

But aren't these conflicting. If you want to live in London wouldn't that be your main residence? Or do you mean live and work during the contract or just for a period of time?

[diseasex]

It the property is through a company there shouldn't be a problem you paying market rate rent for it surely? Just like you would any other landlord. The SPV company is your landlord.

If you want to live in London I guess you'll be there weekends which means you'll only be able to claim 5/7ths of the rent via your LTD though.





But aren't these conflicting. If you want to live in London wouldn't that be your main residence? Or do you mean live and work during the contract or just for a period of time?

I want to keep main residence so I can claim working off home in london I guess? If London property was my main then I'd pay BIK?

[pr1]

if you buy it personally stamp duty will be a lot more (14k?)

[diseasex]

if you buy it personally stamp duty will be a lot more (14k?)

afff i was looking at old calculator i think
£14,000.00 - I guess the answer to the question is no brainer.

[northernladuk]

I want to keep main residence so I can claim working off home in london I guess? If London property was my main then I'd pay BIK?

Dunno, get's very complicated I guess. Wouldn't there be a problem you living in a property that's on BTL? You'd have to have a watertight paperwork chain to make sure you are not using it as a residential property. But then it's via a company so not yours? I dunno tbh.