Limited Company Buy To Let
Al Rayan Bank has built a reputation for introducing innovative Sharia-compliant financial products that offer customers the same benefits as equivalent conventional products, but in an ethical, Sharia compliant way. The Limited Company Buy to Let product is no different, as it not only provides UK based landlords with an alternative to conventional interest-bearing property finance facilities, but also an opportunity to purchase investment properties in a more tax efficient way.
If you own a property as an individual, then the money you earn from rent is taxed as income tax, together with your other earnings. But, if you choose to invest in property using a Limited Company, the profit you make will be liable to Corporation Tax instead, which is currently 20% for profits totalling £300,000 or less.
Unlike conventional mortgage products, Al Rayan Bank’s Buy To Let Purchase Plans are based on the Islamic finance principles of co-ownership (Diminishing Musharaka) and leasing (Ijara), rather than the lending/borrowing relationship. Interest is not involved at any stage. Instead, customers acquire the property in partnership with the bank, and monthly payment contributions increase their share of the house.
Maisam Fazal, Chief Commercial Officer at Al Rayan Bank, said: “As an open and inclusive UK bank, providing a full range of Sharia compliant home finance options to both residential buyers and landlords is of the utmost importance to us."
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YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR LIMITED COMPANY BUY TO LET PURCHASE PLAN
Limited Company Buy To Let Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.
Note: Buy to Let Purchase Plans are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.