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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
I concur with your opinion that a separate company would be a more convenient and safer vehicle by isolating the buy to let from other possible risks. However, providing that the accounting for the buy to let can be clearly delineated, there should be no problem. Remember companies are not subject to the Capital Gains Tax (CGT) regime at all, any gains or losses merely passing through the company's trading account and exposed to Corporation Tax (CT) at 20%. The Chancellor has recently stated his intention to drop this rate to 15% at some time in the future. Thus ER will not come into the equation at all, see HMRC Helpsheet 275.
I do hope that you find my reply of assistance.
I am at a total loss as to what you are getting at with this 20%; please elucidate.
ER can only be claimed in general terms against a cessation of trading activity. The cash holdings if significant do not attract this relief. Application should be made in cases of genuine doubt as to trading status, to HMRC for non-statutory clearance on behalf of its shareholders. HMRC has published a checklist of information to be included in such clearance applications. The Gov UK guidelines can be found here:
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