How does an SPV limited company mortgage help with succession planning?

So, you’ve built up a successful portfolio of buy-to-let properties – but who will inherit them after you’ve gone? We all want to pass on our wealth and assets to our loved ones; but when it comes to investment properties, it’s tricky to pass them on without also saddling your children with extra tax liability.

But by holding your BTL properties in a limited company, you can simply transfer shares of the company to your loved ones at a reduced or nil cost – thereby incurring zero stamp duty land tax on the properties held within it and potentially zero stamp duty tax on the disposal of the shares. However there could be a tax liability incurred on any capital gains at 20% (28% being the rate charged for personal capital gains).

And it gets better; as long as 100% of your own company shares have been passed on to your family before you pass on, you’ll mitigate 100% of inheritance tax as well.

At LimitedCompanySPVMortgages.co.uk, our mortgage broker experts can help you transfer your existing portfolio to a ‘special purpose vehicle’ limited company, and/or secure an SPV mortgage to help you develop your portfolio even further before you retire.

Get in touch to find out more!

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