UK Bad Accountancy Advice? Pls help

May 3, 2018
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United Kingdom
I have a trading company which is LTD.
Two years ago, I saved up enough money in order to buy a BTL property. When looking at the best options on how to purchase the BTL there were a few different ways my accountants explained how we could do this:
1.Transfer the money to my personal name, paying huge income tax (and not being able to offset interest).
2.Create a separate SPV, then ‘loan’ the money from the trade to the SPV.
3.Or, what my accountants pushed; set up a holding company where I transfer the money from the trade, to the holding company, and then from the holding company to the SPV. The holding company is the sole shareholder of the Trade and Hold Co.

The trouble I have with this is:
-This is not common practice; I do not know anyone else who has this set up.
-It cost me £5,000 for this set up and now I am paying for accountancy for 3 companies rather than 2.
-It is much harder to get mortgages for a 2 layered SPV (essentially a Ltd owned by another Ltd)
-The main problem is; my credit limit for my trade has now been wiped out because all my profits get paid into the holding company, therefore I cannot grow my business. Major issue.

There are 4 negatives to what my accountants got me to do. Can anyone see any positives? Does anyone have any comments?

I believe that option 2 above was the best thing for me to do, but this would of earned my accountants less money.

My trade turnover £1m+ per year. The BTL I purchased was £550k. I am currently buying another for £750k.

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