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Can I put my properties into a Limited company to keep from CSA?
I am paying £87 pm for my 2 children. I have just had a recalucation from them stating that they now want £191 per week from me ! I an self employed and some weeks I earn less than that.
My parents passed away lat year and their 2 houses will be spilt between my sister and I. ( this has not yet beeen finalised with the solicitors ) But the CSa has taken this into consideration !as it seems that assets come into play as well .
Can I put my properties into a limited company ( me being a director ) so that the csa cannot touch them ?
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I fully support the principle of the CSA attaching an income value to assets but 8% is *way* to high, no one is getting 8% if it was fixed at the HMRC benefit in kind rate of 4% which is variable then I wouldn’t have a problem with it.
If they are put into a company then they are still a fixed asset of the company and you as a shareholder would be expected to derive 8% of the total value p/a for income which would then be put through their normal calculations.
If this was your primary residence then they cannot touch it or if you sold up and used it to extend or improve your primary residence.
You could assign shareholdings in a shell company owning the properties to your sister with some back agreement that she would leave them to you in her will and setup a “repurchase agreement” with her on a fixed schedule.
A more expensive solution is to put the property into a trust with a return to “Settlor” clause, offshore trusts have this in implicitly. If it was dynastic you could also derive income from it via the children which you could then access but would not be part of your “taxable” income.
If you find a CSA aware accountant who you can pay on a time basis as one thing the CSA is allowed to do is summon your registered accountant and the account may have other ideas.
If you look on the moneysavingexpert website there are a bunch of threads talking through various ideas around this area.