Hi chaps, I'm sorely tempted to go down the route of starting a company so that we can transfer our rental property to it. From what I know (I haven't researched it so I may be wrong / out of date) it would be advantageous to transfer the ownership. I believe that the first £10,000 of profit a limited company makes is free of tax? Is that correct? The rent will be around £1,200-£1,300 - we are mortgage free, but after agent fees and everything the income will still be over £10k a year so this would help minimise the tax exposure. If we were to make a 10k profit on our rental income as a higher rate taxpayers we would have to pay £4,000, but if I understand correctly a company there is no tax liability up to 10k? Sure there will be corporation tax, but that is still less than if we took that as extra income - the extra income increases our tax liability up by more than double the corporation tax. As we are higher rate taxpayers I believe we would pay 40% on the profits? I believe that for a ltd. the tax rates are between 0-30% so even at the higher end is still a saving. Even with the cost of an accountant (my one charges around £500 - once a year) - I think this would be the sensible way to go. Or am I missing something obvious in the new laws? Appreciate feedback (constructive).