In last months article, we covered how operating a company and having that company manage or lease your personally-held properties, can enable rental profits to be legitimately diverted to the company. This can halve the rate of tax paid on rental profits.
The next question is - how can a Higher Rate taxpayer use the companys funds without incurring significant additional tax charges?
Why cant I just take the companys money out and use it - after all, its my money really, as I own the company?
If youre self-employed, or a landlord, you can take money out of your business bank account at any time and use it as your own - the money is yours.