- Original Poster
- #1
Hi everyone,
My wife and I were looking for some help/advice as we look at further investments.
My wife has a fairly/very successful LTD company which she is the only director of, currently about 80k sitting in the business bank account not doing very much. She is also projected to make this next year aswell, and we have discussed in depth her expanding and this is something she doesn't want to do. What we would like to do is invest this money into property to have somewhat of a passive income/keep investing.
We wanted to understand about setting up a Parent company or a subsidiary of my wife's company that could get into the property market, and we were keen to understand what would be the best way to do this using a Parent or subsidiary, and if this is the best Tax efficient way, so we don't pull the money out and have to pay large amounts of tax on it.
I have been thinking the best ways to do this and have a couple of scenarios, and would be great to understand if these are achievable and what would be the most efficient way of doing it would be.
For the example my wife's company will be Company A
Option 1
Company A becomes the parent company - We then set up a 2nd company as a subsidiary which then borrows money from Company A to invest in property
Option 2
We set up a parent company - which then purchases a majority share in Company A, making it the subsidiary and the profits are passed to the parent company to invest in property
Option 3
We set up a parent/holding company - which then purchases a majority share in Company A, making it the subsidiary and the profits are passed to the parent/holding and also set up another subsidiary company which invests in property again profits are passed to the parent/holding company.
Again it would be great first of all to know if these options are possible and some constructive input from some bright/more knowledgably brains would be useful.
Thank you
My wife and I were looking for some help/advice as we look at further investments.
My wife has a fairly/very successful LTD company which she is the only director of, currently about 80k sitting in the business bank account not doing very much. She is also projected to make this next year aswell, and we have discussed in depth her expanding and this is something she doesn't want to do. What we would like to do is invest this money into property to have somewhat of a passive income/keep investing.
We wanted to understand about setting up a Parent company or a subsidiary of my wife's company that could get into the property market, and we were keen to understand what would be the best way to do this using a Parent or subsidiary, and if this is the best Tax efficient way, so we don't pull the money out and have to pay large amounts of tax on it.
I have been thinking the best ways to do this and have a couple of scenarios, and would be great to understand if these are achievable and what would be the most efficient way of doing it would be.
For the example my wife's company will be Company A
Option 1
Company A becomes the parent company - We then set up a 2nd company as a subsidiary which then borrows money from Company A to invest in property
Option 2
We set up a parent company - which then purchases a majority share in Company A, making it the subsidiary and the profits are passed to the parent company to invest in property
Option 3
We set up a parent/holding company - which then purchases a majority share in Company A, making it the subsidiary and the profits are passed to the parent/holding and also set up another subsidiary company which invests in property again profits are passed to the parent/holding company.
Again it would be great first of all to know if these options are possible and some constructive input from some bright/more knowledgably brains would be useful.
Thank you
