Incorporating Existing Buy To Let Properties
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Always seek advice from an experienced proprty tax advisor.
We can provide mortgage advice and have experience in completing on limited company mortgages for just this very situation. We can also offer advice where tax reliefs have been granted by HMRC for both Capital Gains and Stamp Duty taxed.
Any business can incorporate their business and tax reliefs are available subject to qualifying businesses. Just like any business, a landlord can also incorporate their existing properties in a Limited Company. However, you should seek tax advice from an established and experienced property tax adviser.
By incorporating the property portfolio, you should still be able to off-set the mortgage cost against your rental income and pay corporation tax on the profit. Changes in tax on rental income in your own name may mean you could benefit by managing your property via a Limited Company.
Beware: by incorporating your properties as an ‘Asset’, for HMRC definition purposes you are probably liable to pay not least Capital Gains Tax and Stamp Duty Tax. However, incorporating an established ‘Business’ you may apply for tax relief on both these taxes.