BTL business. Starting capital.

[anim]

So many questions, so little time.

ER is by far the best legally acceptable tax efficient manner in which you can get funds to you personally. So, assuming you have significant retained profits in the IT company when you quit the business, you liquidate, pay ER and have the funds in your personal account. You then loan the same funds into the SPV to buy property. SPV then owes you money that will take years to pay back.

So what's happened here? You've created an income stream that will be income-tax free for years/decades. You've already paid tax on it - CGT with ER.

If ER wasn't available, then yes you would just rebrand the company and use the funds in there to purchase income generating assets. But then any extraction of funds will cost you the usual dividend/salary tax.

I'm happy to help but I'm strapped for time. I'll hold a seminar if you guys have enough numbers to drum up a suitable fee for my time.

Depending on the fee amount I might be up for it. Please suggest.

Why new company? One of the main reasons for most of us is going in-IR35/umbrella for the same client. In the current climate very few here will turn down offer to go inIR35 for the same client for, say, £6000/m in your pocket.

You dont want to risk HMRC investigation of your SPV-turned IT LTD.