Over the past few years, a growing number of investors are incorporating or setting up private limited companies to mitigate the negative impact of the buy-to-let tax regime.
As a result, lenders such as Together are offering products tailored to limited company landlords, including those who’ve set up special purpose vehicles (SPVs) as a way of running their portfolios.
Here are a few pointers about why your clients may want to consider the SPV route when setting up a limited company.
What is an SPV?
It’s a company set up solely for the purposes of holding property, and nothing else.
So, if the customer is a part-time landlord thinking of setting up a limited company for tax purposes, and their business makes all of its income from property, it’s an option that could work for them.