A:As with most business ventures there is an associated amount of risk, the same is true of SPV's which is why its important to understand when they should be used.
Mortgage lenders tend to charge more when lending to an SPV and may ask directors to provide personal guarantees. There are also less lenders willing to offer mortgages to SPV's.
When transferring existing properties to an SPV, Stamp Duty Land Tax, Capital Gains tax, and legal costs may be owed.
SPVs do not benefit from capital gains allowance on sale of property
Depending on how rental profits are drawn dividend tax may be owed.