Buy to Let Tax Advice

Our services for property investors, commercial and residential landlords & developers are designed to protect profits, grow investment and minimise tax liability.

You may decide to become a landlord when you inherit a house, or when you move and let your former home. Where a let property is held in the joint names of a married couple or civil partners it can provide a useful income stream for the spouse or civil partner who has little or no other income. Some people hold property to provide an alternative fund for retirement and let it in the meantime.

Whatever your venture, there are a range of taxation issues which will need to be addressed from the outset, as well as a number of specific tax planning aspects and opportunities to be considered.

The amount of tax you pay, and therefore profit made, depends on whether you hold the property as an individual, jointly, through a company or via a pension scheme.

Personal Ownership

Reductions in tax relief for individual landlords are being phased in over 4 years from April 2017. They will eventually be replaced by a 20% tax credit; equivalent to the current rate of income tax. inevitably this means lower profit for landlords can have an impact on child benefit, possible pension contributions and personal allowances. The full impact will not be felt until 2020/21.

Limited Company Ownership

There are tax advantages to running a letting business through a limited company particularly if property has been purchased with significant loan capital. Advantages are however offset to some degree by Stamp Duty and Capital Gains tax on any profit when the property is transferred.

We will happily advise you further on the options available and which is most appropriate for your portfolio.

Please refer to our Buy-to-Let Guide for more information.