Section 24 tax planning - both wife and I are 40% tax payers

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Section 24 rules essentially means that my wife and I would need to use an LTD for a buy to let as we are both 40% taxpayers doing our regular day jobs. I cant see any work-arounds for this. Furthermore, the difference in interest rates between personal buy to lets and that via an SPV appear to have narrowed to below 1% on a 5 year fix.

We are looking at purchasing a couple of student HMO's over the next year. Our priority is to generate income now, and not creating a nest egg for retirement. With this aim in mind, I would welcome thoughts as to how to structure such a purchase. Namely:

-am i right to assume the SPV option is the only realistic option?
-can my wife and I in addition to the £2K dividend each we are entitled to have a directors salary (<£8K) from an SPV as a way of getting money out of the SPV?
- we have 3 kids in primary school - any advantages/disadvantages around making them directors / shareholders when they become adults?

Apologies for the length and complexity of the question. Appreciate views from others before I approach my fairly risk adverse accountant!

Many thanks in advance.

16/03/2018 09:39

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Martin Co
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