ZARZA We are Zarza, the prestigious firm behind major projects in information technology.
Listen "At Progressive With Shaz – Restructuring"
Episode Synopsis
In this episode, Shaz shares in-depth and comprehensive answers to property entrepreneurs' questions about restructuring.
Some activities are classified as trading and some as investment so structuring your business in the right way, using investment and trading holding companies makes a huge difference to the tax and reliefs you can claim so this episode is a must for anyone building a successful property business.
KEY TAKEAWAYS
With different property strategies, you should have different companies
Serviced accommodation, flipping and deal sourcing are all treated as trades
Have one holding company as the investment company, with other companies with different people as partners and shareholders
A second holding company can be used trading doing deal sourcing, flipping and SA
If you buy and hold property for tax purposes you have an investment company
When you buy and sell something it’s a trading business
The government incentivise by giving more tax relief and exemptions if you are trading
If shares are sold in an investment company there is no entrepreneurs relief
If 20% or more of your turnover, profit, value of assets or time spent is directly linked to the investment side of the business you will lose trading status
A holding company is determined by the shares it has in the other companies below it
BEST MOMENTS
‘If it’s a trading business the first million pounds you make, you will only pay 10% tax on the shares’
‘You don’t want to lose trading status’
‘You should not mix investments and trading together’
VALUABLE RESOURCES
[email protected]
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
Facebook
LinkedIn
Instagram
YouTube.
Some activities are classified as trading and some as investment so structuring your business in the right way, using investment and trading holding companies makes a huge difference to the tax and reliefs you can claim so this episode is a must for anyone building a successful property business.
KEY TAKEAWAYS
With different property strategies, you should have different companies
Serviced accommodation, flipping and deal sourcing are all treated as trades
Have one holding company as the investment company, with other companies with different people as partners and shareholders
A second holding company can be used trading doing deal sourcing, flipping and SA
If you buy and hold property for tax purposes you have an investment company
When you buy and sell something it’s a trading business
The government incentivise by giving more tax relief and exemptions if you are trading
If shares are sold in an investment company there is no entrepreneurs relief
If 20% or more of your turnover, profit, value of assets or time spent is directly linked to the investment side of the business you will lose trading status
A holding company is determined by the shares it has in the other companies below it
BEST MOMENTS
‘If it’s a trading business the first million pounds you make, you will only pay 10% tax on the shares’
‘You don’t want to lose trading status’
‘You should not mix investments and trading together’
VALUABLE RESOURCES
[email protected]
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
YouTube.
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