Our company, Innovation 4 Business, was approached by a client who operates a property investment business. The client was seeking expert advice on property partnership incorporation, which involves transferring their property portfolio to a limited company.
What did the client want?
With an impending change in legislation, our client was looking to transfer their whole property portfolio into a limited company as a way of minimising tax charges. These legislative changes concerned our client due to additional expenses they would face; however, the changes did not impact limited companies.
Our client was also seeking refinance for their portfolio of investment properties, with the intention of repaying existing loans, as well as using the remaining capital for new ventures.
They were aware that this would be a complex transaction and were therefore concerned about the time it would require, as they didn’t want to be impacted by the legislation changes. Consequently, they were looking for a quick and efficient transfer of their property portfolio.
How did our integrated service support this complex commercial transaction?
Our companies Innovation 4 Business and Finance 4 Business worked together to offer the client the best solutions and assist in transferring their properties to a limited company, as well as securing refinance.
Innovation 4 Business provided expert advice, as well as completing the transfer of the whole property portfolio without triggering any tax charges. This saved our client a total of £57,040 from Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT).
We also successfully transferred the client’s portfolio to a structure that enabled their company to claim full deduction of mortgage interest rate against rental profits, which would then be taxed at 19%.
Once all of the properties had been changed from their personal name into a limited company, the client needed to repay their existing loans. They also planned to use the remaining capital to fund other ventures.
This is where our company Finance 4 Business comes in – their expert commercial mortgages team reviewed the client’s requirements, finding the right solutions for their needs. They sourced a suitable lender, ensuring that the client would get the outcome they desired, and began to proceed with the transaction. 75% LTV across all properties was agreed, and once all the requirements had been satisfied, the lender released the funds.
How do our integrated partnerships ensure success?
Our integrated service by Finance 4 Business and Innovation 4 Business allowed for a streamlined process, with optimum communication and collaboration between businesses. At ARMCO, we value partnerships and a collaborative approach to business. It allows us to complete complex commercial transactions, andconsiderably reduce the time taken to achieve our client’s goals.
With a large number of requisitions from our client, we had a lot of work to cipher through. However, we maintained continued communication with the client’s solicitor, ensuring that all parties remained updated.
Between our integrated services, and the communication we maintained with our client’s solicitor, we easily supported our client’s requirements. Overall, they were very satisfied with the outcome that our integrated partnerships allowed:
“Finance 4 Business has recently supported us through the complex transaction of moving our personal property portfolio into our limited company while refinancing to assist to pay for the process.
“Despite the complexities, a number of parties involved and the length of time that this was anticipated to take, the team at Finance 4 Business were a pleasure to deal with. The knowledge, communication and hands holding demonstrated to get this over the line was first class and wouldn’t hesitate to recommend them.
“My property purchases, however simple or complex, will be going to Finance 4 Business going forward.”