Currently sole trader but speaking with accountant to see if setting up company is better way to goIs spouse true self employed (sole trader) or proprietary director of Ltd company? If the latter (my status), I was advised that I could make a significant lump sum contribution to a pension.
Wouldnt be much CGT but feel I would hang onto BTL as kids may want to use. BTL mortgage will be paid off by time they would look to move outWell, the obvious thing that jumps out at me is that your spouse needs to start thinking about contributing to a pension again.
On a back of an envelope calculation, your rental property is returning around €7k p.a., after tax, on €145k equity. Not awful by any means, but hardly stellar.
It might be worth hanging onto the rental if it’s worth less than you paid for it (i.e. if CGT wouldn’t come into the picture on a sale).
Personally, I would be inclined to liquidate your other after-tax investments/deposits and pay off the mortgage on your PPR, notwithstanding your cheap fixed-rate.
Keep it simple.
I don't understand the tax implications of mortgages on a rental.Hard to see the merit of personal investments whilst carrying debt.
200k mortgage. Fixed at 1.95% until april 2027
Trade republic self - 50k
Trade republic Spouse- 50k
Lightyear self - 20k
Zurich fund self -50k (Contributing 2500 a month).
Shares 20k
Cash at bank earning no interest- self 10k
Cash at bank earning no interest- spouse 40k
85k mortgage outstanding maturing Oct 2029. Tracker +0.6%.
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