Learning center

(1) Reviewed by our chartered accountants. Please ask for the full workings and assumptions. Some key assumptions are an investor is non-UK resident and taxed at Higher Rates in England, purchases a property for £500k producing a gross rent of £20k p.a.. Investor uses a 70% LTV interest only mortgage at 3% interest. The property’s value increases 3% p.a. and is sold after 5 years. All tax rates are based on 19/20 tax year. As with any illustration, this is a simplified position and does not take into account individual circumstances which could affect the tax outcomes. Tax legislation is complex and legislation is subject to changes in drafting as well as changes in interpretation by courts and tax authorities. The illustrations are not designed to be an exhaustive example of all the tax implications that may affect you and you should seek professional advice in considering the tax position appropriate to your circumstances.

Same taxes on property purchase

Personal ownership

Company ownership

Same taxes (e.g., SDLT) as personal ownership if you rent out your property to 3rd parties

Deduct mortgage interest from your tax bill

Replaced with a basic rate credit

This is a significant saving on its own

Efficiently take income from your property

Income Tax as profits arise

Choose between repaying an owner loan or dividends

If you sell, Stamp Duty Land Tax (SDLT) for the buyer

Buyer still pays SDLT

No SDLT when buying shares = price advantage

Lower Capital Gains Tax (CGT)

18% or 28% CGT tax

10% or 20% CGT tax for sale of shares

• All companies set up by GetGround are private limited companies incorporated in England and Wales
  
• Given they are private limited the company’s assets and liabilities are separate to the shareholders'. So, if their investment goes wrong, the shareholders' other assets are safer (e.g., their family home)

• GetGround allows up to 8 shareholders in any company
  
• Buy and sell shares without:
• Stamp Duty Land Tax
• Conveyancing lawyers
• Complete a share transfer in a day rather than the 6-8 weeks it usually takes for property conveyancing