Starting a company

[graham]

Hi All.
I will be getting married next year and have a number of BtoLets that I am keen to protect (Call me an old romantic!)
Would I be best to protect these investments prior to marriage by setting up a limited company or is a pre-nup a good idea.
Id favour the former to avoid hassle from the fiance.
I am concerned that by not protecting my BtoLets I could lose 1/2 of what Ive worked hard to accumulate should the marriage go pear shaped at some point in the future.
Regards
Graham

[slade]

I'm no expert, but Shares in a company are just as much of an Asset as are properties. You could share them around other people, but that is (should be) a bigger risk.
Too late for me - after 20 years of marriage, nothings my own anyway - so if she runs off with the milkman whatever I'm left with (other than debt) is a bonus.
The real issue here is "If you exclude properties in a pre-nup, can you still get the tax relief?".

[Taxation Solutions]

Graham

The setting up of a limited company could be very very expensive as far as you are concerned. To shift your BTL properties into a company you would effectively be selling then at full open market value to the company!!

This would mean an immediate (and I suspect very large) capital gains tax liability and possibly stamp duty. Be very careful when using companies for residential BTL investments as it can be expensive as companies often produce a double tax charge.

I am sure your wife would have a claim on your entire assets if the worse situation arose anyway.

Jason
www.propertytaxation.co.uk