Buying rental properties in my name vs through a business

[Auxois]

I'm going to buy two rental properties and maybe more in the future.

I currently have a full time job which pays a salery above the personal tax threshold of £12,570. Therefore, I would have to pay 20% tax on my rental income.

How about if I start a business instead? I could lend the business enough money to buy two flats and buy the flats through the business. Then the rental income can be used to pay back the loan. Business expenses (loan repayment) deducted from rental income will be £0 profit so the business has £0 tax to pay. I personally wouldn't need to pay any tax on the renal income either because it's a loan repayment. Obviously the tax will need to be paid back when the properties are eventually sold so the taxman wont loose out.

I dont really know much about this subject so please tell me if this is how business works or am I talking nonsense?

 

[Submiller]

I used to be awful at business but with the help of https://en.ibuyessay.com/college.html I really understood how to buy rental properties for the best possible prices!

 

[pearsonandpearson]

Attempting to structure your investments to minimize taxes is common, but it's crucial to do so within the bounds of the law. The rules may vary based on your location, and professional advice can help you make informed decisions.

 

[Kevinrochay]

Absolutely, tax strategies are important but must follow the law. Seeking professional advice is key for wise decisions.

Attempting to structure your investments to minimize taxes is common, but it's crucial to do so within the bounds of the law. The rules may vary based on your location, and professional advice can help you make informed decisions.