In-depth reports

GetGround Advantages in details

Open the door to tax efficiencies

The example investment scenario below highlights a +52% to +66% increase in potential returns1.

(1) Reviewed by our chartered accountants. Please ask for the full workings and assumptions. Some key assumptions are an investor is non-UK resident and taxed at Higher Rates in England, purchases a property for £500k producing a gross rent of £20k p.a.. Investor uses a 70% LTV interest only mortgage at 3% interest. The property’s value increases 3% p.a. and is sold after 5 years. All tax rates are based on 19/20 tax year. As with any illustration, this is a simplified position and does not take into account individual circumstances which could affect the tax outcomes. Tax legislation is complex and legislation is subject to changes in drafting as well as changes in interpretation by courts and tax authorities. The illustrations are not designed to be an exhaustive example of all the tax implications that may affect you and you should seek professional advice in considering the tax position appropriate to your circumstances.

Tax advantages throughout the investment: Purchase, ownership, sale

Same taxes on property purchase

Personal ownership

Company ownership

Same taxes (e.g., SDLT) as personal ownership if you rent out your property to 3rd parties

Deduct mortgage interest from your tax bill

Replaced with a basic rate credit

This is a significant saving on its own

Efficiently take income from your property

Income Tax as profits arise

Choose between repaying an owner loan or dividends

If you sell, Stamp Duty Land Tax (SDLT) for the buyer

Buyer still pays SDLT

No SDLT when buying shares = price advantage

Lower Capital Gains Tax (CGT)

18% or 28% CGT tax

10% or 20% CGT tax for sale of shares

Protect yourself through limited personal liability

All companies set up by GetGround are private limited companies incorporated in England and Wales
Given they are private limited the company’s assets and liabilities are separate to the shareholders'. So, if their investment goes wrong, the shareholders' other assets are safer (e.g., their family home)

Easily buy and sell with others

GetGround allows up to 8 shareholders in any company
Buy and sell shares without:
Stamp Duty Land Tax
Conveyancing lawyers
Complete a share transfer in a day rather than the 6-8 weeks it usually takes for property conveyancing

Improve your inheritance planning

Shares are subject to inheritance tax just as property is
However, with shares you are able to more flexibly manage your inheritance tax
For example, there is a mechanic where you can gift value to another person, and over time the inheritance tax liability on this reduces until after 7 years it is 0%. With shares you can:
Slowly gift value away e.g., 10% of your company every year
Separate economics from control, so you can gift away the economics but retain control e.g., parents often like this solution

Years between gift and death

Tax paid

< 3 years

40%

3 to 4

32%

4 to 5

24%

5 to 6

16%

6 to 7

7 or more

Access well-developed mortgage markets

Lending benefits with GetGround

Onshore UK entities with access to specialist buy-to-let lenders
Lenders tend to have lower income requirements for company versus personal ownership
Lenders tend to have lower rental stress tests for company versus personal ownership
Commercial lending options

Potential mortgage lenders

Send foreign currency to your financial account and exchange it to GBP

When you send your foreign currency into your GetGround financial account using your IBAN you will be notified when it arrives in the account. When the foreign funds are in the account you will then have access to our GBP exchange service at our competitive rates in real time. Your funds in local currency can be returned to your domestic account if needed at any time.