Updating post from Reddit.
My parents left me this place, although I already owned some of it, which they gave to me decades ago. I’m doing up the flat for rent, the commercial bit is already let out to a shop. Should I put this in a Ltd company now? I basically want to leave it to my only kid, and want to plan for taxes etc best I can.
Yes
It depends, if you can "inherit" the property into the LTD Company that would be a better position.
If you have already inherited the property, then you will have to pay SDLT again to transfer the property into a LTD Company.
I have already inherited the property. I have no issue with paying duties and taxes but I’m trying to figure out what might be best to accumulate funds for the future.
It's a case by case basis, you should talk to a Tax Adviser.
In the long-run owning in a LTD Company is the best route for Higher Rate Taxpayers that intend to retain the profits in the company to re-invest. However, theirs a break even point down the road with you having to pay SDLT etc.
It's not the best route if your a basic rate taxapyer (or no path to becoming higher rate). It's not the best route if you plan to live off and spend the rental income.
Ah that’s a great explanation, thank you. This really helps to consider a direction.
LLP might be better, LTD may be tax inefficient, a Trust is another option
Could you or someone explain the practical benifits of a LLP.
I think theres a lot of issues with trusts these days . including i believe paying tax every 10 years on the value or something
You can move a property into an LLP without tax implication