KRW: Your property tax experts

December 3, 2018|In KRW Insight|By Callum Andrews

Buy-to-let landlords have been under attack in recent years with the 3% stamp duty surcharge, the restriction of tax relief for mortgage interest, and now changes to letting relief.

At KRW we look after a number of property investors and have helped them to mitigate the impact of the tax changes relating to mortgage interest relief which, in some cases, would have seen the property owners facing a tax bill higher than their rental profits by April 2020!

Many buy-to-let property owners are only just starting to feel the impact of the changes to tax relief for their mortgage interest, which is being phased in from April 2017 onwards, and will be fully in force by April 2020.

The mechanism by which the new rules operate mean that many property owners are being pushed into higher tax brackets, or triggering the high income child benefit charge or the loss of their personal allowance, all of which lead to higher tax bills.

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 for larger portfolios.

We have also helped other land and property owners to significantly reduce their Capital Gains Tax liabilities, through careful tax planning.

Key Facts

  • Buy-to-let landlords are being hit with rising tax bills on their rental profits from 2017 onwards
  • Limited companies often provide a more tax efficient vehicle for larger property portfolios
  • Moving a portfolio into a company can be done without triggering stamp duty of CGT
  • We can also provide Capital Gains Tax planning advice on the sale of land/property

For further advice on this matter, please contact me.

Callum Andrews

Client Manager