Nigel, Chris and Malcolm and Ben answered questions put to them during our live webinar on Mixed Partnerships and Hybrid Business Models which took place on 8th February 2022.

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. If using form 17, can the mortgage interest be transferred to the lower rate taxpayer?
  2. If you use a DOT is there any SDLT to pay to transfer some of the income to your wife?
  3. If a sole owner was to incorporate his business and transfer the property into LTD Company, what sort of taxes would one pay? CGT/SDLT?
  4. Are properties re-based on entry into the mixed partnership hybrid structure (as they would be when incorporating into an Ltd Co.)?
  5. How many properties qualify as a portfolio for becoming a mixed partnership business?
  6. I am still a Basic Rate Taxpayer with 3 properties so far. As long as I keep the profit from my properties under £50,000 will I be ok?
  7. I would like to know what is the difference between your strategy which is an LLP, and the strategy offered by others which is a limited company with various share structures (share A, B, C …) and discretionary trust?
  8. Chris mentioned that [The Hybrid] is not for the short or medium term. How long is the right time?
  9. Do LT4L Clients make use of different share classes and discretionary trusts?
  10. Can I buy a company car via my limited company? – do you get taxed even if its a small amount
  11. Any SSAS providers you are working with already for your clients?
  12. Can you transfer property to someone who isn’t a British citizen?
  13. If you live in the UK for less than 90 days do you still have to pay tax?
  14. After setting up an LLP, is it worth setting up a QNUP (Qualifying Non-UK Pension Scheme)
  15. Is Class 4 NI of 9% added to the 20% tax making it 29%?
  16. How many cars are you allowed in an LLP?
  17. If you have a mixture of profitable Property investment companies but still in spite of this hold the lion’s share of properties to the tune of about £40m with a low debt of around £2.5m, in your personal name-would a hybrid tax structure work for me to better plan my estate as because I am earning over £500k per annum, I want to reduce this to invest in an SSAS-my current accountant is too conservative and says my properties in my personal name are my pension but on hearing you today -there is a better way
  18. Is there a way to use the proceeds/income/profits of the hybrid to invest in real estate within the US? Is that considered as still continuing to invest in the business of real estate as far as HMRC is considered? If not, is there some other way to use any funds generated here to fund US investments?
  19. You stated that incorporating into an LTD will not have the benefit of pre-approval of HMRC. Will Hybrid be pre-approved?
  20. How do mortgage companies view the transfer of a property into a Hybrid LLP? Do you need to tell them? Could they object?
  21. Can the profit generated in an LLP be moved totally into an LLP SSASto mitigate nic, tax etc?
  22. If you buy investment properties with a business partner rather than a spouse or family member do you need multiple LLP’s & Ltd Co’s?
  23. What are the costs involved in setting up a Hybrid structure with you in total and what is the monthly /yearly costs involved?
  24. Can we add children into the LLP if they are still minor please? Or do we need to restructure again when they reach 18?
  25. If HMRC contacts us about the structure set up in time and challenge this. Will you assist in this should the worst happen and how will you support this. Have you had this issue in the past and how did you handle it.
  26. Would we still need to file a self-assessment and declare rental income under this structure?
  27. Can you clarify whether or not I’m likely to need to pay SDLT if using a Deed of Trust and Form 17 to transfer income to my spouse?
  28. Can you carry forward losses into the structure?
  29. When adding an Ltd Co. to the LLP and you only add 1 Ltd Co. – is there a benefit of adding an existing Ltd Co. that shows historic property investment with a business partner? Or is it not relevant?

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