Nigel, Chris and Malcolm answered questions put to them during our live webinar on Mixed Partnerships and Hybrid Business Models which took place on 12th January 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. Do you have an approximate cost per property associated with moving from a limited company to a hybrid business model?
  2. When acquiring new properties in the structure, do you recommend the purchase is made in the Ltd. Company?
  3. When incorporating properties into the structure, are latent gains a potential stumbling block (as they would be when incorporating into an Ltd. Company)?
  4. Can you claim for furnishing of property, bed, wardrobes, white appliances?
  5. Is there a threshold for clients’ profit or sizes of a portfolio that you accept as your clients?
  6. Are there restrictions to moving to a Hybrid model for a Landlord? i.e. need to own more than 1 BTL property? So only limited to a portfolio landlord or can be applied to anyone? Also, if a Landlord has 1 property on a personal name and planning to purchase an additional one, do you suggest setting up a Hybrid model prior to purchasing?
  7. I am a high rate taxpayer and currently have 1 property purchased via an ltd company and another property in flight. is this a case where I should move to a hybrid structure?
  8. Is moving to the Hybrid structure a straightforward process especially considering mortgage contracts?
  9. Is there a strategy for moving personal property into a company without the Capital gains tax hit?
  10. Is it true that as a sole trader you can transfer your properties to a Partnership, and after 3 yrs transfer to an LLP without paying any CGT?
  11. Is the Hybrid appropriate for property developments?
  12. I am a 50/50 shareholder with my daughter in an Ltd Company. I also wish to leave a fair inheritance to two other children that are not in the business. If I live another 20 years the equity could easily grow to more than £2 million, plus my private residence, so the inheritance tax bill might be huge. I was thinking of adding my other children as non-voting shareholders so that I don’t own the company by the time I die. What are your thoughts on this – could this work as well as the hybrid structure for me? 
  13. Do you pay SDLT when moving from personal to hybrid?
  14. Do you have insurance that covers any payments the client has to make should HMRC investigate?
  15. Does your insurance cover any losses to the client or just professional fees?
  16. How can the lenders not be informed if the company is paying the loans?
  17. Does a deed of trust create a trusted entity (legally) and as such is it subject to trust tax at a % of the asset every 10 years?
  18. Do the savings in tax often equal the annual cost of being and staying in the LT4L company?
  19. How long typically from stage 1 to stage 4 . Given the tax year starting again in April, can you start the Hybrid system at any time within the tax year?
  20. Please can you say a little more about members not being taxed on what you draw down to live on?
  21. If the portfolio has a number of properties are you free to sell properties in the LLP and buy other properties? Or not to buy and not pay CGT?
  22. I have two properties in my personal name. When I spoke to you 2/3 years ago you couldn’t take me on as a client as I am not an out and out property investor – would this still be the case?
  23. What does the company do in a hybrid structure? Are there two sets of accounts to do for the hybrid structure one for the partnership and one for the company?
  24. will buying multiple properties in the structure be prohibitive if we want to buy a main residence in future (we currently do not own one)
  25. Would you suggest combining my personal portfolio with my property investment LTD company into a hybrid structure? Or keep them separate? If separate, do I expand my property purchases through the hybrid or LTD company?
  26. is the hybrid structure an official business structure recognized by the HMRC, or is it a structure invented by LT4L?
  27. I understand the properties don’t need to be remortgaged, but let’s say the fixed period ends and moves to SVR, how easy is it to remortgage each property in the future?
  28. Is there an easy answer given my situation where I own 3 BTL properties, 2 in my own name and 1 in a limited co. I am looking to purchase a property in the next month. My wife and I are in a higher rate tax bracket. My intention is to run buy to let as a business over time and accumulate more properties. Sounds like buying in my own name, for now, is the best option but would like to confirm.
  29. Is there a time limit or time allowance during the fact find a process where Less Tax For Landlords gets to know my situation and provides viable options and we move to stage 3? 
  30. If the LLP pays the loan how can it bypass Section 24?
  31. What do you need to be doing with your property portfolio in order for HMRC to accept a hybrid structure? If you have a portfolio of rental properties is that seen as an investment rather than a business?
  32. is there a means to move the majority of profits into an SSAS pension whilst minimizing tax liabilities?
  33. For Hybrid would I need to put wife’s name on properties title? and how complicated would that be?
  34. Some lenders are not lending to the professional landlord (with 15 or more properties). Can you suggest how the client can increase the business with borrowing restrictions like this?
  35. What are the ongoing charges to work with you?
  36. I have a couple of low-value properties and we are a lower rate taxpayer. From now, I want to buy properties in a family investment company for IHT reasons. Can we set up a family investment company for property investment ourselves (like a normal limited company)? If not, how much will it cost for your company to help to set up?
  37. Is it correct to say that there is no CGT after 1 year in the hybrid structure?
  38. What is the function of the limited company in the hybrid and must its duties differ from the human shareholders?

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