From April 2017 landlords who let residential property in their own name will be faced with the gradual loss of tax relief for finance charges. Mortgage interest and other finance charges will be added back and, in place of a deduction, any Income Tax due will be reduced by a basic rate tax credit being 20% of the finance costs disallowed.
Many landlords are considering their options and one strategy that is being mooted is the incorporation of a property business. Companies are not subject to the finance costs changes.
landlords however should approach this with caution and we recommend seeking professional advice before engaging in any incorporation. The two taxes to be aware of are:-
Capital gains Tax
Stamp Duty land tax
There are strategies to put in place to mitigate these potential significant sums but care and attention will need to be paid and specific planning put in place for this to happen. Please contact if you feel this is relevant to you and your business for further advice.
Many landlords are considering their options and one strategy that is being mooted is the incorporation of a property business. Companies are not subject to the finance costs changes.
landlords however should approach this with caution and we recommend seeking professional advice before engaging in any incorporation. The two taxes to be aware of are:-
Capital gains Tax
Stamp Duty land tax
There are strategies to put in place to mitigate these potential significant sums but care and attention will need to be paid and specific planning put in place for this to happen. Please contact if you feel this is relevant to you and your business for further advice.
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