Why landlords need to wait three years to set up a Family investment company

Professional Landlords and Limited Companies
Some landlords suggest managing property portfolios through limited companies to address income tax concerns related to section 24 issues.
However, even after incorporation, company shares remain part of the estate for inheritance tax purposes.
Inheritance Tax Challenges for Professional Landlords
Long-term challenges for professional landlords often involve inheritance tax issues that need careful consideration.
Advantages of Family Investment Companies
Charles advocates for the use of family investment companies and employee benefit trusts, especially for those with significant capital gains and inheritance tax problems.
Incorporation Relief and Partnership Accounts

Immediate Claim for Incorporation Relief
Some accountants propose an immediate claim for relief when properties are owned equally by married couples.
However, HMRC typically requires separate partnership accounts and personal tax returns for at least three years.
Patient Approach for Successful Claims
Charles recommends patience to ensure a successful claim for incorporation relief on the first attempt.
Avoiding potential issues on a second claim after the three-year period is crucial.

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