Buy To Let Tax Help

Award-winning accountants with specialist knowledge in the property sector.

Understanding your opportunity

With recent changes to UK legislation there are now a number of different ways to efficiently manage your property letting activities.

We can help ensure you get the best outcome.

Changes that impact you

Recently there have been a series of tax changes which will affect buy-to-let landlords:

  1. Tax relief for interest payments against rental income to be restricted to basic rate deduction
  2. Wear and tear allowance to be replaced with a deduction for capital expenditure incurred
  3. Additional 3% Stamp Duty Land Tax on acquisition
  4. Retention of the 28% CGT rate on residential property gain

Personal Vs Company ownership

Due to these recent changes personal ownership may not be the most tax efficient way to hold BTL properties as company ownership offers several advantages:

  1. Corporate tax rates reducing to 19% (2017) and 17% (2020) with further possible reductions
  2. Full interest relief
  3. Flexibility of extraction of surpluses to spouses / adult children
  4. Indexation allowance on corporate gains (deduction for inflation)
  5. Better governance
  6. Limited liability

Read more about Personal Vs Company ownsership

Each situation is unique

However, there are a number of factors to consider before using a company not least the additional costs of SDLT (which may have to be paid again when moving a property into a company), additional compliance costs and potentially Capital Gains Tax. 

No two situations are the same so we can advise you on the pros and cons of incorporation and guide landlords through the decisions to be made in each circumstance.

Who is Price Bailey?

Price Bailey is an award winning top 30 firm of business advisers and chartered accountants with a wealth of experience across London and the South East in offering advice and value to buy to let property landlords.

More about us

 
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How can we help?

 

Contact us

To speak to one of our specialist tax advisers please call 0800 434 6460 or you can submit your buy to let tax question online here and a tax expert will come back to you.

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