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Nigel, Chris and Malcolm answered questions put to them during our live webinar on Mixed Partnerships and Hybrid Business Models which took place on 7th April 2021.

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

  1. At what point does the capital gain on properties put into the mixed partnership model crystallize in incorporation it is turned into share value what happens to it on transfer into the hybrid and on transfer into the hybrid?
  2. Would I move my family’s buy to let portfolio into the LLP and then into a limited company structure?
  3. If his son wanted to sell some properties in 10 years time how would the CGT be calculated?
  4. Do you have to continue buying property to make the hybrid model work, if so how many and how much a year? Can you stop buying after a certain point and not expand and if so how long?
  5. Is the hybrid structure still beneficial if you have a portfolio with no mortgages on any of them?
  6. Can you incorporate your own residential property into the LLP?
  7. Do I have to rent the property out to include it in the hybrid business structure?
  8. Does stamp duty still have to be paid when transferring ownership from individuals to the hybrid structure?
  9. Can you include development property in the structure?
  10. At what point would you consider it worth reviewing changing the structure of a privately held portfolio?
  11. As a hybrid business are you permitted to recycle your increased profits into paying down debt?
  12. What are the costs involved for advice and support when working with Less Tax for Landlords?
  13. Hypothetically, if you had deferred any maintenance wouldn’t one want to maximize these costs within the allowable guidelines in any tax year as these costs directly reduce the business profit being fully allowable whereas finance costs only recreate 20% for those financial mortgage costs?
  14. How can a property investment business be treated like a trading business for BPR purposes?
  15. Do I need to use your services once the structure is set up or can I use my own accountants moving forward?
  16. Do you offer any standalone tax advisory services and set up without ongoing support?
  17. If I am starting my journey should I buy property in my personal name or straight into an LTD company?
  18. Can Form 17 be used to split ownership between spouse and children over 18?
  19. Do you get clearance from HMRC before setting up the hybrid model?
  20. Is the rent paid to LLP or to the individual?
  21. How do you show you are running a business?
  22. My wife and I got a UTR for partnership returns planning to incorporate the partnership after 2 years as advised by my accountant. Would this make things easier or harder to go to hybrid?
  23. If I have already incorporated, back in 2015, is it too late to use the hybrid structure?
  24. What happens to a hybrid company if I move abroad?
  25. Do your fees vary by portfolio size?
  26. If under the hybrid structure I can keep borrowing in my own name, how is the structure viewed by lenders?
  27. Was the hybrid set up because of section 24 or has it been around for a long time?
  28. Can you bring different land types in too e.g. forestry?
  29. Does the structure have to involve a minimum of individuals or can it be used by just one person?
  30. If I have some properties already in an Ltd Company Structure and have other properties in individual names, can I put those into an LLP and combine them with the LTD Structure?
  31. Can i include properties in a personal name and in the company into the hybrid model? do I have to dissolve the company?
  32. Would you advocate placing each new rental purchase into a new ltd for asset protection whilst included in the hybrid structure?
  33. I have a 6 property portfolio with my wife, plus 1 property with a business partner owned 50/50. Can I put 6 of the properties in LLP as well as my 50% of the property with my business partner?
  34. If looking at succession, and you ultimately want to pass property to your children, which structure would allow you to exclude portfolio assets from a future spouse of your child…ie looking to ringfence the assets from a potential future divorce?
  35. If you add your children into this structure, can children get the first time buyer benefit for their first personal residence?
  36. Do you deal with SSAS or SIPPS? Can they work alongside the hybrid?
  37. What does the PI cover?
  38. Based on your experience, can also you see this 20% mortgage interest relief abolish in the future considering the way things are going against the landlords?
  39. How quickly can one start to file submissions via LLP if they want to go ahead today?
  40. If I am a basic rate taxpayer from my income from ‘job’ but higher rate with rental income. If I set up a hybrid structure and move all property into that. Do I remain a basic rate taxpayer re- my job income?
  41. Do the lenders like hybrids as much as they do private ownership or ltd co?
  42. What happens if HMRC changes the rules? Is there a plan to roll back?
  43. if I sell a property within a hybrid structure, as it’s held by me, why do I not get hit with CGT?
  44. Can form 17 be changed more than once?
  45. Can we start as LLP from the very beginning? Or do you suggest starting as LTD then hybrid?
  46. If we are operating LLP will the properties be in LLP name or personal name?
  47. If you remain as a sole trader, is there a limit to the number of properties you can have?
  48. Can the hybrid operate as a complete property business, including investment, flipping, property maintenance, letting agent?
  49. Can I take the rental income from the account in a hybrid model? would that be considered as a dividend and taxed accordingly?
  50. If I have a full-time job paying well will there be any tax benefit in LLP?
  51. Can LT4L help with structure setup for current ex-pats?
  52. Do you have a checklist of all the information that you require before step 1 and step 2?
  53. Nigel mentioned a mortgage company that does not want properties in personal names to be included in the LLP – who is it?
  54. Can partners in the structure be in full-time employment in other professions to qualify as a ‘business’?
  55. If you are a higher rate taxpayer but your total rental income is approx £30k what’s the most tax-efficient approach, I believe you mentioned need £50k+ to make the LLP beneficial?
  56. How can the hybrid help us if we currently live off the portfolio income but need to invest further in the business to be able to grow to a size that can be seen as a proper business?
  57. The £3000 for step 3 covers exactly what? Is this the only way to engage with you?
  58. If HMRC wanted to hit landlords, why would they not hit the hybrid?

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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