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:
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.