Thanks Samuel, great recommendation. Thanks for watching 🤝

Cheers for watching! Glad you liked it

Cheers Robert! You are absolutely right, Peter always just wants to offer good advice with rational behind it. 🙏

Great to know thanks 🔥🙏

Cheers Alex 🤝

Thanks Samuel, really interesting insight. The holding company topic is a bit of a minefield and I’ve heard so many different opinions from investors and brokers!

@@JustinWilkins it’s true, my advice comes from a generalised business and taxation perspective. For someone in your position, with a couple of trading companies and one investment vehicle, if you had a holding company owning 100% shares in each, not only could you easily move cash and assets around the group but later in life you may want your family involved and you’d only have to manage that in one place. If you JV’d with someone, your shareholding in that LTD co can be owned by your holding company and you don’t have to go through all that admin again. The articles of association attached to the holding company, can be inherited down into any subsidiaries added at the start or later… also worth noting for the older investor who’s starting to consider IHT.

Whenever I've looked, lenders won't lend if there is a group structure in place. They've always insisted on the btl company being directly owned.

@@ChrisLee-yr7tz that was the case a while ago, but many lenders now accept group structure, such as Kent reliance

😃👏👏

Only your GCSE results printed on paper from your secondary school.

thank you and apologies for the tech issue

Correct, he will own 100% of co A and co A own 100% of co B

@Pam77 when company B pays dividends to comoany A, this is classed as an expense for company B, right? Also, do the dividends need to be from profits, or can they be from gross sales?

@@Zero-Investing dividends can only be paid out of ‘retained earnings’, basically all profits made accumulated together. Any dividends paid would then be taken off retained earnings, so dividends are not technically an expense to the company

@Pam77 in layman's terms, can company B give "dividends" tax free to company A without paying tax them selves? Let's say company B made 20k profit and gave 20k dividends to company A. Would company B have 0 profits and 0 tax to pay?

@@Zero-Investing if Company B makes £20k profit, they would then pay tax on this which is an expense, for example the tax may be £2k. This gives a retained earnings figure of £18k, they would then be able to pay the £18k as a dividend to Company A, this dividend is then tax free for Company A If that dividend didn’t go to Company A and instead went to someone personally they would then have to pay personal tax on this dividend Hope that makes sense?

Your understanding of tax on mortgage payments i am afraid Is wrong. In a ltd company you can only offset interest as a cost. Buying in your personal name , as a top rate tax payer you cannot even offset the interest. You will however get a small amount of relief on the tax owed which is the difference between the top rate of tax (40 percent) and the basic rate of tax. Please don’t buy a buy to let until you have grasped this basic rule.

Personal landlords can only use a percentage of the mortgage interest as an expense. Vs the fact that limited companies can use all the mortgage interest - but not the repayment 🙂🤝

No business or individual can offset capital repayments as an expense so what are you talking about?

@@JustinWilkins That's not strictly correct although it nearly ends up that way. You profit calc completely excludes the interest expense and that is used to calculate the tax. You then receive a tax credit of 20% of the interest expense, ie at basic rate.