Tax Planning / Business Structure

A client approached us wanting to set up a limited company for a rental property. Before proceeding, we discussed their goals and personal circumstances. The primary reason for them wanting to place the property in a company was to secure relief on the interest. However, while the client was a higher-rate taxpayer, their spouse was not. By transferring the property to the spouse’s name, we achieved full relief on the interest payments. This outcome avoided the ongoing fees and administrative burden of a limited company while providing the desired tax relief.