Nigel, Chris and Malcolm answered questions put to them during our live webinar on Mixed Partnerships and Hybrid Business Models which took place on 20th July 2021.

You can read the full list of questions asked and answered on the call, as well as find details on how to watch the replay.

  1. In a previous webinar, you said that the limited company member can invest in the LLP and that these monies can be withdrawn tax-free. Can you please explain this in more detail?
  2. Have you had any clients who have died after using a mixed partnership and where HMRC allowed the Business Property Relief claim against Inheritance Tax?
  3. I was told that if I have already put all the business into an Ltd company – a hybrid structure will not be possible now – this is correct?
  4. Is it viable to swap from a company into the hybrid structure? 
  5. If I reinvest equity from a personal property into a new personal property, then CGT can be deferred. Is this the case if I take the equity from the sale of personal property, and lend it to my Ltd company to purchase a new property?
  6. Can properties be uplifted into an LLP (or hybrid model)with the existing mortgages on them? 
  7. Do you need to spend 19 hours a week working in your business?
  8. Using a form 17 between husband: wife, to split a 50:50 ownership to an 80:20 benefit split – is stamp duty payable?
  9. My father, my sister, and I combined have a portfolio of 10 properties, can we combine them all into one hybrid model/partnership?
  10. If the properties are in an SPV, can the rental profit generated be transferred to a trading property business, and taken as a wage by the directors on a PAYE basis?
  11. If under the hybrid structure I can keep borrowing in my own name, how is the structure viewed by lenders? ie high street lenders – in your experience?
  12. What is the likely hood of the Mortgage interest deduction which is currently allowable, being removed in future within an LTD structure?
  13. Can you please explain what you mean by the return of Capital from an LLP?
  14. Once LLP is in place can I continue buying in personal names? or in the LLP ? or in another SPV Ltd company? What is recommended?
  15. Can we add low-income relatives as members of the LLP but they do not own any of the properties, however, they will be helping to run the family property business going forward with any excess income above the higher rate allocated to the ltd company.
  16. How long does it take to become a client?
  17. Do you have a structure that would protect assets on divorce?
  18. Do you need to notify the lender when you incorporate into a mixed partnership?
  19. Can I use a letting Agent?
  20. Why are other accountants not recommending this structure to their customers?
  21. What does the limited company do in the structure? and If the property has a mortgage when introduced to the LLP is this part of the capital introduced?
  22. Can low-income relatives invest cash as capital?
  23. I have personal losses of almost £75,000 Would you delay moving to a partnership?

Existing Subscribers can access the full video using their Video Vault access link sent by email.

For new users, sign up free to the Video Vault to watch the video and hear the answers to these questions. Alternatively, you can also watch the full webinar replay for more in-depth information and talks from our experts in addition to the Q&A. Follow the links below to find out more.

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