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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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I am a higher rate tax payer. I need to rent out a property

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I am a higher rate tax payer. I need to rent out a property becuse I cant sell it. Should I be looking to set up a company to do this or should I do it as an individual, which is more tax efficient ?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Setting up a company may not be that beneficial if you have just a property to rent as the cost of set up, admin cost etc may outway the advantage in tax saving on the rental profit.

Yoo will be transferring the property to the company. Companies do not get gains allowance on sale where as a taxpayer gets gains annual allowance similar to personal allowance.

I hope this is helpful and answers your question.
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Expert:  taxadvisor.uk replied 2 years ago.

I thank you for accepting my answer.

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Best wishes.

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