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Limited Company 'Property Management'

If you own properties and spend time managing them, you could form a Ltd company to charge a management fee for that time you are spending as the letting agent / manager. This could then be received into the Ltd Company as a fee charged against each of the properties and the profits could be distributed in accordance with normal profit extraction (salary / dividends / expenses) or retained in the business)

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Pros and Cons

  • No need to sell the assets

  • No need to migrate the assets across

  • Simple management fee strategy and structure

  • It doesn’t move the assets away from your estate however

  • CGT will still be payable on eventual sale of the assets

 

This company wouldn’t be VAT registered and would be pretty straight forward so I would estimate the cost of operation would be £150 + VAT pm.

Including

  • Cloud accounting

  • Bank feed and reconciliation

  • Expenses management and an App

  • All statutory filing and requirements

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