The aim for cash over the period is not important, so it supports not being taxed on ongoing income. You also interested in something which gives you a gain at the end. While you do not mention if you will then keep your portfolio at the time of retirement, it is common to have this in place.

Your position is best served using the properties in your own name and using a limited company to use up any rental profits over the period. This is commonly know as a property rental company. I would then suggest you were to make a disposal year on year and have these in as many people’s names as possible, so the whole family needs to be involved. Then disposals at the end will lead to little tax.

Another popular option for wealthy families we look after is using a famility limited company. By using a charitable trust it is possible to put assets into the company and avoid the hassles of wealth, is paying taxes on income, CGT and IHT and having ongoing issues with the ex wifes and husbands as married couples split taking some family wealth with them. We work with people with portfolios over £2million by setting up this structure.

Whatever you do there will be some tax savings to be made even from just allocating the right home as your principle residence while it may be easy to know, many will fail to do basis tax saving decisions – hopefully you will not be on of them.

Colin Davison, Property tax expert, colin.davison@cranleys.co.uk 01256 830000.

Having renovated and build personal homes, I find myself in a nice home that we plan to stay in for a number of years. I am now looking to build a property portfolio (renovations/build/buy to let) that will deliver a steady income to supplement a pension in 15-20 years time. I am not looking to take any money out now and wondered if you could advise as to the most tax efficient way or reaching my goals – limited company / personal etc.

Thanks for you help in advance.

Nick