Hi all
I am the LL and am currently renting my property out. I'm currently working in a job where my total taxes (including rent) are just inside the 40% bracket but I will be changing jobs soon which will take me well inside the 40% bracket and so all of my rental income will be taxed at 40%.
I was wondering about the possiblity of transferring my interests and obligations under the lease to a company that I have set up for my employment. It's just a one-man company for freelancing.
Is it then 20% or 25% corp tax? Do I then get landed with 40%+ if I try pay myself from the company too? Perhaps I can set up a pension from the company but is the rental income just subject to a 20% flat fee?
Am I best off to just take the 40+% hit as keeping the rental agreement in my name or any tax planning that could help?
Thanks!
I am the LL and am currently renting my property out. I'm currently working in a job where my total taxes (including rent) are just inside the 40% bracket but I will be changing jobs soon which will take me well inside the 40% bracket and so all of my rental income will be taxed at 40%.
I was wondering about the possiblity of transferring my interests and obligations under the lease to a company that I have set up for my employment. It's just a one-man company for freelancing.
Is it then 20% or 25% corp tax? Do I then get landed with 40%+ if I try pay myself from the company too? Perhaps I can set up a pension from the company but is the rental income just subject to a 20% flat fee?
Am I best off to just take the 40+% hit as keeping the rental agreement in my name or any tax planning that could help?
Thanks!