SPV & Tax Planning
What Constitutes an SPV Company?
An SPV is fundamentally designed to hold assets, such as real estate properties, while minimising associated risks and maximising financial efficiency. Typically established as a limited company, SPVs can also take the form of trusts or partnerships, occasionally operating within the framework of trading limited companies.
Our Process
SPV & Tax Planning
01
SPV Setup and Management
Formation Assistance: Expert guidance in establishing SPVs via Companies House or specialised accounting professionals. Comprehensive Structuring: Detailed support for directors, shareholders, business intentions, shareholding distributions, and SIC code declarations.
02
Tax Planning and Compliance
Annual Compliance: Filing annual accounts with Companies House and HMRC, ensuring minimal compliance costs. Tax Optimisation: Leveraging the 19% corporation tax rate and managing dividends for tax efficiency.
03
SPV Operational Support
Property Asset Isolation: Assisting in isolating and securitising assets for efficient management and reduced risks. Transactional Operations: Streamlining joint ventures, capital acquisitions, and operational transactions for smooth functioning.
04
SPV Portfolio Management
Strategic Portfolio Structuring: Managing diverse property portfolios including HMOs and distinct SPV-held properties. Share Transfer Management: Meticulous assessment of tax implications and stamp duties during share transfers.
05
Mortgage and Financial Guidance
Mortgage Options: Advising on tax-efficient commercial mortgage access for SPVs. Financial Optimisation: Assistance in navigating lending terms, considering tax efficiency and government policies.
06
Professional Consultation and Support
Legal and Accounting Expertise: Partnering with seasoned professionals adept in SPV operations and property tax laws. Technology Integration: Utilising technology for seamless accessibility and efficient operations.
FAQs
1.What is a SPV ?
SPV, or Special Purpose Vehicle, is a generic name for a legal entity that is created for a limited or defined purpose. Within property investment they are formed for purchasing and holding residential buy to lets or for property development.
2.What is the purpose of SPV ?
An SPV, or special-purpose vehicle, is a legal entity that allows multiple investors to pool their capital and make an investment in a single company. SPVs have multiple use-cases in the business world. Public corporations sometimes use SPVs to isolate certain holdings from the parent company’s balance sheet.
3.What role do SPVs play in taxation and property investment ?
SPVs benefit from a lower corporation tax rate of 19% and offer tax-free dividends up to £2,000 per shareholder. Further dividends are taxed based on overall income at varying rates. They play a crucial role in tax-efficient property investments.
4.How are SPVs established, and what is the role of SIC codes ?
SPVs are commonly set up as limited companies, involving the appointment of directors, defining company details, drafting MOA and AOA, and allocating shares. SIC codes (e.g., 68100, 68209) categorise the business activities of SPVs.
