Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum: Property planning

22 September 2015
Issue: 4519 / Categories: Forum & Feedback , Residence & domicile

Can property income be sheltered in a company without a change of ownership?

Despite recent changes to the taxation of dividend income and with corporation tax rates low but income tax rates high by comparison the question of whether to conduct a property rental business through a limited company remains very topical. 
I act on behalf of some clients for whom property investment forms the bulk of their retirement planning. The prospect of avoiding 45% tax on accumulated rental profits is attractive but the stumbling block inevitably is the potential capital gains tax liability if the properties are transferred to the company and incorporation relief is denied. There is also the usual issue about double taxation on disposal of the properties and extraction of the funds.
Is it possible for a company to carry on the rental business while the director retains ownership of the property? My first...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon