Transferring your buy-to-let portfolio to a limited company?

The Unicorn Group is fast becoming an industry leader in incorporation relief, we understand that the need to transfer assets in to a limited company is becoming more prevalent due to S24. It can however be a complex topic for many of our clients. With changes in tax law and the intricacies of running a business, it can become a headache to manage your finances effectively. That's why today, we want to share some valuable information about incorporating your business and how it can impact your mortgage application.

Incorporation relief is a tax relief that applies to the transfer of a business from an individual owner to a company. This relief can significantly reduce the amount of tax owed on the transfer of assets, including any property or land that is owned by the business. The rationale behind this relief is to remove any barriers that may prevent the transfer of a business to a company structure.

When it comes to obtaining a mortgage, incorporation relief can play a critical role in the application process. Incorporation relief can significantly reduce the amount of tax owed on transfer of a property from an individual owner to a company. This tax relief can make buying a property more affordable for incorporated businesses.

Additionally, incorporating your business can help you build a strong financial profile, which can be beneficial when applying for a mortgage. By incorporating, you separate your personal finances from your business finances, which can make it easier for lenders to evaluate your creditworthiness.

However, it's important to note that incorporating your business can also have some drawbacks when it comes to obtaining a mortgage. When you transfer a property from an individual name to a company, you may be subject to additional fees, including stamp duty land tax. This can affect the affordability of a property for incorporated companies.

Another consideration is that lenders may be wary of providing mortgages to incorporated businesses that are new or do not have a robust financial history. Typically, lenders prefer to work with individuals rather than companies that are still in their infancy.

At our mortgage company, we understand the complexities of incorporation relief and how it can impact your mortgage application. Our experienced team can help you navigate these complexities to identify the best path forward for your business. We can help you maximise any tax savings and ensure that your business operates in compliance with all regulatory requirements.

In conclusion, incorporation relief can play a significant role in the mortgage application process for businesses. It's important to weigh the benefits and drawbacks of incorporating and determine which approach is best suited to your needs. At our mortgage company, we have the expertise and experience to help you navigate these complexities and secure the best mortgage for your business. Contact us today to learn more about how the savings that can be made

Som

Group Executive 

Som@unicorn-group.co.uk 

07710565720