I had an incredibly valuable meeting with Zee Razaq from Certax Accounting earlier this week.
I want to share some of the key insights, so that others may start to think differently about their own tax affairs.
I have spent the last 15 years building a property investment business, which has now reached a size that necessitates very careful planning, in respect to tax efficiency.
I spent the first 12 years, working in either salaried employment or as an independent contractor on a self employed basis.
I have spent the last 3 years working as a business owner, having launched my trading business Stacked in 2020.
I'm 35 years old at the time of writing and God willing, I will spend the next 35 years growing both my property investment and trading companies because I love the game.
In many respects, I'm already late to the party, as I have benefited from residual income and capital growth, which is subject to taxation.
That being said, in a property context, it's fortunate that I own a lot of properties within the confines of a ltd company and have managed to avoid capital gains tax, on account of typically re-financing, rather than selling properties, which I have added value to.
It is with an eye towards the future that I decided to consult with Zee earlier this week. Having done so, I shall be engaging his services, so as to benefit from his extensive knowledge and experience.
Here are some of my key learnings, which you may wish to explore in the context of your own business.
Whenever you buy a new property, think very carefully about the vehicle that you use to do so. There are different tax implications associated with buying in your own name vs a ltd company for example. It is far better to set things up in the right way from the outset, rather than acting in haste and then needing to tidy up a mess later.
If you're planning to build trading and property investment businesses for the long term, you should consult with a tax and estate planning expert, so that everything is structured in the most tax efficient manner.
Ideally, whichever tax advisor you chose to work with, should be actively building trading and property investment companies themselves. If this is the case, they are far more likely to keep their knowledge updated, so they can offer you the best advice, both now and in the future.
Whenever you set up any form of corporate structure, you should also consult with your mortgage and finance brokers. If you're not careful, you could spend a lot of money creating a very tax-efficient corporate structure, only to discover that you're borrowing options are severely limited.
Think carefully about whether could benefit from creating a SSAS pension, so that you have a tax-efficient wrapper, which you can use to protect and grow your wealth.
From an estate planning perspective, you should not only be mindful of the taxes that you will need to pay, whilst you are growing your wealth but also those, which your descendants will need to pay in the future, if you fail to set things up in the right way.
I want to share some of the key insights, so that others may start to think differently about their own tax affairs.
I have spent the last 15 years building a property investment business, which has now reached a size that necessitates very careful planning, in respect to tax efficiency.
I spent the first 12 years, working in either salaried employment or as an independent contractor on a self employed basis.
I have spent the last 3 years working as a business owner, having launched my trading business Stacked in 2020.
I'm 35 years old at the time of writing and God willing, I will spend the next 35 years growing both my property investment and trading companies because I love the game.
In many respects, I'm already late to the party, as I have benefited from residual income and capital growth, which is subject to taxation.
That being said, in a property context, it's fortunate that I own a lot of properties within the confines of a ltd company and have managed to avoid capital gains tax, on account of typically re-financing, rather than selling properties, which I have added value to.
It is with an eye towards the future that I decided to consult with Zee earlier this week. Having done so, I shall be engaging his services, so as to benefit from his extensive knowledge and experience.
Here are some of my key learnings, which you may wish to explore in the context of your own business.
Whenever you buy a new property, think very carefully about the vehicle that you use to do so. There are different tax implications associated with buying in your own name vs a ltd company for example. It is far better to set things up in the right way from the outset, rather than acting in haste and then needing to tidy up a mess later.
If you're planning to build trading and property investment businesses for the long term, you should consult with a tax and estate planning expert, so that everything is structured in the most tax efficient manner.
Ideally, whichever tax advisor you chose to work with, should be actively building trading and property investment companies themselves. If this is the case, they are far more likely to keep their knowledge updated, so they can offer you the best advice, both now and in the future.
Whenever you set up any form of corporate structure, you should also consult with your mortgage and finance brokers. If you're not careful, you could spend a lot of money creating a very tax-efficient corporate structure, only to discover that you're borrowing options are severely limited.
Think carefully about whether could benefit from creating a SSAS pension, so that you have a tax-efficient wrapper, which you can use to protect and grow your wealth.
From an estate planning perspective, you should not only be mindful of the taxes that you will need to pay, whilst you are growing your wealth but also those, which your descendants will need to pay in the future, if you fail to set things up in the right way.