What are the advantages of buying a house in the name of a company in Britain?

Britain is the most economically developed country in the world. What are the advantages of buying a house in the name of a company in Britain? Dear, I have compiled relevant information for you here, hoping to help you.

I. Tax treatment of profits

Excluding all expenses (including interest, intermediary, property, etc. ), the corporate tax rate is 20% (it may be reduced to15% in the future); If it is an individual, it is necessary to calculate the tax according to the ladder, and the average tax rate of 60,000 pounds is above 30%. If the annual income exceeds 60 thousand pounds, the excess will be taxed at 40%. That is, 15% versus 40%.

So if you plan to buy many suites, you might as well buy these properties in the name of the company, and the tax will be paid according to the company tax, which will be much reduced (you personally hold the equity of this company as a company director).

As long as your money is not withdrawn from the company, all your profits only need to pay 15% profit tax. You can keep these profits in the company and buy more houses. If the money is taken out of the basic salary plus dividends, the tax rate of the part below 30,000-40,000 pounds per year is very low, and the tax rate of the part above 40,000 pounds will be similar to that of personal income tax (please consult a professional accountant for the specific figures).

So if you keep buying a house, put it in the company, don't mention your personal account, or don't withdraw the part that exceeds the tax limit. This is a cost-effective way to deal with the purchase and rent, and only need to pay 15% tax.

Two, the loan tax credit to deal with mortgage interest

Thirdly, as mentioned above, after 2020, loan interest will no longer be used for tax deduction. That is to say, if your annual rental income is 65,438+05,000 pounds and your loan interest is 6,000 pounds, then it is taxed at 9,000 pounds now; However, after 2020, all your income will be taxed 15000, which is equivalent to offsetting your income to a great extent.

But it doesn't matter if your company owns it. You can still use this interest repayment as an expense of the company to offset your tax.

Therefore, after 2020, companies will pay much less taxes than individuals, which is why after Osborne proposed this reform, everyone will use companies to hold real estate.

Third, the inheritance tax should minimize the chance of inheritance tax.

If you want to give your property to your children, you only need to transfer the property right of the company to your children, and you don't need to pay inheritance tax, because technically, these shares and dividends of the company can be exempted from the company property tax. In contrast, if you want to pass on your inheritance to your children normally, you have to pay a huge inheritance tax. (For details and calculation methods, please consult a professional accountant. )

Fourth, stamp duty.

20 1 6 April1new policy. Individuals need to pay an additional 3% stamp duty when buying a house or a second house or above. If you use a company to buy 6 or more houses at one time, you can get the stamp duty of business, which is much lower than that of ordinary individuals! (For details and calculation methods, please consult a professional accountant. )

The benefits of buying a house with the company are probably the above.

If the latter two are secondary, the first two: profit tax and loan tax offset is to take advantage of the company to buy a house!