Episode overview
Ed Passmore is a Tax Partner at Lovewell Blake and specialises in advising Landlords. In this episode Ed joins James to talk about both the structural and tax aspects of running a successful property business with a particular emphasis on limited company ownership, Inheritance Tax planning, Trusts and Capital Gains Tax when changing ownership.
Episode summary
This episode sees James Shipp joined by Ed Passmore, a Tax Partner at Lovewell Blake who specialises in advising landlords and property investors. The discussion explores how landlords can structure their property businesses efficiently, examining the advantages and drawbacks of holding property personally versus through a limited company. The conversation highlights how business structure can affect taxation, long-term wealth preservation and succession planning.
A major focus of the episode is inheritance tax planning for property owners. Ed explains how trusts can be used as part of a wider estate planning strategy, helping landlords pass wealth to future generations while retaining appropriate control over assets. The podcast also examines the practical considerations surrounding capital gains tax when transferring property ownership, restructuring portfolios or moving assets between individuals and entities. Listeners gain a clearer understanding of the tax implications that can arise from decisions made today and the importance of planning ahead.
Throughout the episode, the discussion emphasises taking a strategic approach to property ownership rather than focusing solely on short-term tax savings. By considering limited company ownership, inheritance tax exposure, trust arrangements and capital gains tax together, landlords can make more informed decisions that support both their current business objectives and their long-term family and wealth planning goals. The episode provides a practical overview of the key tax and structural issues landlords should consider as their property portfolios grow.
Key takeaways
The structure used to hold property can have significant tax and commercial implications.
Limited company ownership may offer advantages for some landlords, depending on their objectives.
Inheritance tax planning should form part of a long-term property strategy.
Trusts can play an important role in passing wealth between generations.
Capital gains tax must be considered when changing property ownership structures.
Property transfers can trigger tax consequences that require careful planning.
Tax planning is most effective when aligned with wider family and business goals.
Professional advice can help landlords avoid costly mistakes and identify tax-efficient opportunities.
Chapters
00:00 - Introduction and HMRC's view on landlords
01:28 - Unincorporated vs Limited Company structure
03:22 - Mortgage interest relief restrictions
04:22 - Buying direct vs transferring existing property
05:18 - Capital Gains Tax (CGT) on transfer to a company
07:02 - Stamp Duty Land Tax (SDLT) and surcharges
07:42 - Inheritance Tax (IHT) and passing on wealth
08:53 - Direct gifting and the 7 year rule
10:11 - Company share structures and growth shares
12:22 - Director's loan accounts and tax efficiency
16:16 - Using Trusts for property and holdover relief
18:20 - Lifetime inheritance tax charges on Trusts
20:30 - Incorporation Relief: eligibility and rules
23:31 - SDLT multiple dwellings and non-residential rates
24:22 - Partnership to limited company incorporation
26:45 - The importance of long term tax planning
29:29 - Summary and wrap-up
Guest bio
Ed Passmore is a Partner at Lovewell Blake and a qualified Chartered Tax Adviser (CTA) and Chartered Accountant (ACA). Based in the firm's Norwich office, he provides specialist tax advice to both individuals and businesses, helping clients navigate complex tax matters and make informed long-term financial decisions.