How I Invest In Property With a Holding Company

In this video, I explore how you should be using a property holding company to buy property & real estate through a limited company. If you have a cashflow business and want to move profits into assets or invest in something like property, then make sure you don't put your businesses at risk!

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Timestamps
00:00 Intro
01:02 Moving Money Up & Down
01:55 Example of Moving £20k Up & Down
02:09 Loaning Money Sideways
02:47 Risks of Side to Side
03:24 Owning a Company With Other Directors
04:17 Using a Holding Company
04:35 Holding Company £20k Example
05:11 Holding Company: Protection
05:33 Holding Company: Company with Multiple Directors
06:09 Spreading Out Your Pay To Lower Tax
06:53 Cons of a Holding Company
07:41 Conclusion & Subscribe

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WHO AM I:
I'm Matt, a product owner and property investor working in London, UK. I make videos about tech, personal finance, productivity and business. In my spare time, I’m documenting what it takes to diversify my income and build a business.

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If you’d like to talk, I’d love to hear from you. DM @wtfpropertyinvesting on Instagram and I'll happily get back to you!

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[InvestingforHumans]

Thank you! It’s nice to see a video on YouTube in this field on something I haven’t seen before. Valuable information, thanks for sharing.

[JamieWhiffen]

Fantastic video that taught me a lot about holding companies!

[dawidone]

Hi mate. Great video. Which business account did you get for the holding company as Starling Bank doesn’t do holding companies.

[mogheesmir]

Another great video Matt... Thank you!

[glenrussellproperty]

As always very helpful and this is exactly how mine are setup. Great video 👍🏻

[husnainshah]

Wow never heard of a holding company! Time to be educated!

[palmgolfip]

Hi Matt, great video, do you have to have a different SIC code for this?

[HasanKubba]

Brilliant explanation. I learned a lot thank you!

[syebethel]

On the estate planning issue, are you saying the heirs should be directors only, or shareholders as well? I see how, being directors, they can make decisions right away, much like a trustee would. But if they are already shareholders, no shares will have to be inherited, thus limiting their personal taxes.
Your thoughts?

[Jrt]

You don’t have to a take dividend when other shareholders of company C do.

[igaryy]

please talk about active vs passive rental properties under a holding company. can a passive company under the holding still pass through losses? can the losses be passed to the other subsidiaries if the rental is passive?

[CoachPursuit]

With regards to your comment on making children directors and having no IHT to pay, this is only true if the actively trading subsidiaries (contracting/flipping companies for example) generate higher profit than the investment company that you hold your buy to lets in.

Once your BTL company generates more than the trading businesses under the holding structure, it is classed as an investment holding company and subject to full IHT as there is no business property relief on investment companies, or entrepreneurs relief if you close it down.

Gifting your shares to descendants 7+ years before you pass away is a way of avoiding IHT but obviously hard to predict when your time has come...!

[leosun]

It sounds very useful ! But I am concerning if the lenders like the way you are doing ?

[deanbullen]

At 4:46, you are loaning from your holding company to company B. Why not just issue extra shares in company B and have your holding company purchase them? Any advantage one over the other? The shares way seems neater to me.

[AAA]

If you want to set up a limited company for property investing, can money in the limited company be used for buying further property without incurring income tax ? or do you need to transfer the money to a holding company ? Thanks for the great video

[michaelF]

Hi Matt,
I’m currently doing exactly the above, however having push back from the bank as they don’t like the loan down from the holdings company being used for a deposit in the property company. I’d really appreciate if you could name some banks you’ve had success with mortgaging.
Thanks in advance.
Michael

[eddyd]

Why not just invest with the company that’s earning the revenue?

[okunrin]

I work for a bank by day... blah blah blah.. 🙄

Everyone doesn’t want to pay taxes, but everyone wants something from the government. Crazy.