This is a simple, easy to understand example to help you quickly appreciate the benefits of employing our restructuring platform.
The figures chosen reflect an average and realistic portfolio. Values chosen are round figures so that you can extrapolate the results and appreciate the order of magnitude of savings we will help you achieve.
Base Figures
A landlord owns 10 properties:
Values Rents
Purchased for 3,000,000 Rental income £500,000 per year.
Value today 5,000,000 Rental expenses £10,000 per year.
Value in 2021 £6,000,000.
Mortgages
The properties were remortgaged to buy later properties (i.e. total mortgages outstanding is £5m).
Mortgage interest 2% 100,000 per year.
Comment
The summary sheet below is the result of four pages of detailed calculations performed by one of the UK’s leading specialist tax accountants.
In it you will clearly appreciate the landlord’s position (remember this is a relatively modest portfolio):
Taking No Action
- Results in him paying £18,700 more Income Tax every year by 2021
Employing Our Restructuring Platform
- He saves £109,000 every year in Income Tax
- He saves £732,197 in Capital Gains Tax
- Finally (not on the summary because it’s a simple calculation)
He saves £2,270,000 in Inheritance Tax
