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Many landlords around the country are expressing concerns over the new tax changes and the effect this could have on their profits. Well now to add to the wows it is muted that an interest rate rise is coming by the turn of the year.

Good yield on rental income

Average rents in the UK increased at a greater rate in June of this year than in any other month on record a recent report reveals. Monthly nationwide rents showed an average of £790 last month which is 1.4% higher than records showed in May and in turn up by 5.6% over the last 12 months.

Buy-to-let and the Limited company

Landlords will know about the mortgage interest relief changes which are on the way. We are getting numerous calls asking how changing from a private to a limited company could affect future borrowing. We have made a list of the most common questions below and given a very simple answer which we hope will assist you.

Tax changes for landlords in more detail

This is a very popular subject within the buy-to-let community currently so we decided to have a deeper look at what can be done. It is likely accountants are going to advise to transfer property assets into a newly formed company. The main tax benefit of this action is that rental profits are taxed at the corporation rate of 20%. The government recently announced the good news that this rate will reduce to 19% in April 2017 and then to 18% in April 2020. Landlords will be able to take profits by the way of dividends which will make income very tax efficient. From April next year the first £5,000 of annual dividend income will be exempt from tax. Above this amount basic rate tax payers will pay 7.5% and higher rate tax payers 32.5%.

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Quick to Fix ?

Good yield on rental income

Buy-to-let and the Limited company

Tax changes for landlords in more detail

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