01 February 2017
KRW: Your property tax experts
Buy-to-let landlords have already been hit with the 3% stamp duty surcharge, and with a raft of income tax changes on the horizon, it pays to seek expert advice. At KRW we look after a number of property investors and are well versed in the forthcoming tax changes relating to mortgage interest relief, and the withdrawal of the wear and tear allowance.
Many property owners with multiple properties have not yet realised that they will not only face less tax relief for their mortgage interest, but also the mechanism by which the new rules operate will see many property owners pushed into higher tax brackets, or triggering the high income child benefit charge or the loss of their personal allowance. For highly geared portfolios, property owners may well find that their annual tax bill will exceed their rental profit by 2020!
As a result of the new rules, we have advised a number of clients on moving their portfolios into a limited company, which with careful planning can often be achieved without triggering stamp duty or Capital Gains Tax.
Furthermore, we understand the commercial challenges around arranging finance in a limited company, and other practical considerations that need to be taken into account.
For further information, please contact me.
- Buy-to-let landlords are facing rising tax bills on their rental profits from 2017 onwards
- Limited companies often provide a more tax efficient vehicle for property portfolios
- Moving a portfolio into a company can be done without triggering stamp duty of CGT
- We can provide expert advice on your options, taking into account practical considerations