Why partnership incorporation?

What is partnership incorporation? If you and your spouse have been investing in buy-to-lets for a while, but your net income isn’t reflecting the effort you’re putting in, incorporating the partnership could be your pathway to minimising your tax costs and maximising your rental profits.

Essentially, partnership incorporation is simply turning your existing property investment activities into an established limited company. Your jointly-owned portfolio assets are transferred to the new limited company, in ‘exchange’ for you and your partner becoming the main shareholders of the company.

The benefits of incorporating your property partnership often include:

• Incorporation relief; no capital gains tax (CGT) until you sell your shares
• Income taxed at corporation tax rates (19%)
• Up to 100% stamp duty land tax relief (SDLT) on incorporation
• Tax-efficient profit extraction; your salary is essentially an allowable expense
• Shares can be transferred to your children with no IHT or SDLT
• Access to limited company mortgage options

Expert partnership incorporation tax advisors

Is partnership incorporation worth it? Turning your property investment business into a fully-fledged limited company can be a very complex procedure, which takes careful planning to reap the rewards.

The answer? It all depends on your personal circumstances. That’s where we come in.

At the Property Tax Guys, our property tax specialists can guide you through the entire process of partnership incorporation. We’ll help you identify if your particular property investment business is a good candidate for limited company incorporation, or if other tax relief routes may be the better option for you and your partner.

If partnership incorporation is the right solution, we can assist with converting your unincorporated buy-to-let portfolio into a limited company; completing all the necessary paperwork, and ensuring your new business qualifies for all the tax saving benefits that incorporation can offer.

With over 30 years of shared expertise in buy-to-let tax and accounting, you can trust the Property Tax Guys to help you evolve your property partnership and make more from your investments. Call us on 0208 090 2604 or email info@propertytaxguys.co.uk to start investigating your partnership incorporation project today.