What are the main exit strategy disadvantages of holding a buy-to-let in a limited company, specifically regarding Capital Gains Tax upon selling the property versus selling shares, and potential issues with extracting accumulated profits at a later date?
Quick Answer
Holding buy-to-let properties in a limited company creates specific exit strategy disadvantages, primarily involving Corporation Tax on property disposals and subsequent income tax on profit extraction, leading to a double taxation effect. This contrasts with personal Capital Gains Tax rates and the complexities of selling company shares.
About This Topic
Examine the exit strategy disadvantages for UK buy-to-let limited companies, including Corporation Tax on property disposals and double taxation on profit extraction, compared to personal CGT or selling shares. Learn about the complexities and impacts on investor returns.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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