Readers forum_Deed of trust

Deed of trust

A client has several buy-to-let properties which are held in his own name and in the joint names of himself and his wife. He also has several companies which are mainly investment companies each holding one or two properties for rental purposes along with some companies that will develop property.

He is finding it difficult to obtain finance for future buy-to-let residential properties if these are purchased in a limited company. It has been suggested that he buys the property personally and then uses a deed of trust to split the beneficial interest from the legal ownership whereby a company would receive the rent. The rent would be taxed in the company at 19% rather than on him personally at 40%.

I do not think the idea is a good one for the following reasons.

• Would HMRC accept a deed of trust as an instrument...