Specialists buy-to-let brokers are urging buy-to-let landlords to tread with caution and seek appropriate advice before jumping into incorporating their property business into a limited company.

The reduction in mortgage interest tax relief and the introduction of stamp duty are two relatively recent initiatives that have resulted in some landlords reassessing their property businesses and deciding to incorporate.

Lenders are predicting there will continue to be a growing trend towards limited company buy-to-let activity this year. But they warn this may not be the best practice for everybody.

It is understandable that buy-to-let landlords want to avoid paying more tax than is necessary, it is essential, as with any investment, that they fully investigate how their personal circumstances apply to buy-to-let taxation.

Caution

Many landlords are perhaps seeing the headlines and are considering incorporating their property investments, as limited companies are taxed differently to individuals. Taxation is a complex issue and landlords should before considering this move seek advice from a tax specialist. This move will ensure that their buy-to-let venture would actually be better off tax-wise, in a limited company.

Good news is that should this be your chosen route there is an exceptionally good range of limited company buy-to-let deals available. The market has recognised this move and lenders are shifting more towards the corporate route daily.

Help required?

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