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Make more money and pay less tax: Property Joint ventures

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Make more money and pay less tax: Property Joint ventures

  1. 1. Make more money and pay less tax: Property Joint Ventures Finance & Tax
  2. 2. o Looking to work with other business partner(s)? o Looking for the right structure from a finance perspective? o Aiming to reduce your tax liability? Are you…. Make more money & pay less tax on your property portfolio
  3. 3. JV Great Partnerships Make more money & pay less tax on your property portfolio Trump & Kiyosaki Books & Education Joint Ventures
  4. 4. JV Great Partnerships Make more money & pay less tax on your property portfolio Jobs & Gates Microsoft financed Apple’s recovery
  5. 5. JV Great Partnerships Make more money & pay less tax on your property portfolio Of course Donald (Not Trump) & Mickey
  6. 6. JV Benefits Make more money & pay less tax on your property portfolio o Combine finances o Share financial risks o Share profits o Tax strategies o Banks lending
  7. 7. Different JV Options Make more money & pay less tax on your property portfolio Partnership Directors Contract No partnership Your earnings = Average of the 6 closest people in your network
  8. 8. JV Option 1 Make more money & pay less tax on your property portfolio Partnership Split profits Agree how profits are to be split
  9. 9. JV Option 1 Make more money & pay less tax on your property portfolio Partnership Split profits o Spouses share profit to minimise tax High tax earner Non-tax earner PROFITS 1% TO 99%
  10. 10. JV Option 1 Make more money & pay less tax on your property portfolio Partnership 40%+ Tax Partnership tax is same as self assessments: 20% - 40% tax
  11. 11. JV Option 2 Directors Flexibility of splitting shares for financial and tax reasons 33% 33% 33% or 40% 40% 20%
  12. 12. JV Option 2 Make more money & pay less tax on your property portfolio Directors o Directors pay themselves the personal allowances to maximise tax savings
  13. 13. JV Option 2 Directors o Corporate tax is 20% compared to self assessment of 40% - 50%
  14. 14. JV Option 3 Contract No partnership Loans o Fixed rate of interest o Fixed period of time o Loan agreements Example: - £10,000 at 12% - One year
  15. 15. JV Option 3 Contract No partnership Lender o £10,000 – Capital debt o £1,200 income for self assessment
  16. 16. JV Option 3 Contract No partnership Loanee o £10,000 – Capital debt o £1,200 finance cost for self assessment
  17. 17. Make more money and pay less tax on your property portfolio
  18. 18. Make more money and pay less tax on your property portfolio
  19. 19. Questions? Contact us TODAY…. W: www.optimiseaccountants.co.uk T: 0115 946 1991 E: simon@optimiseaccountants.co.uk Make more money & pay less tax on your property portfolio

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