Property Tax Planning


Many individuals have started to purchase buy-to-let properties within a company and are therefore seeking property tax advice. The move away from personal ownership was mainly due to the mortgage interest restriction being phased in from the 17/18 tax year. Should you buy a property as an individual or in a company? The answer is “it depends on your circumstances”. Our property specialist tax accountants are here to help.

There are many pro and cons of holding properties individually and in companies. With a ‘no one size fits all approach’, our specialist advisers can assist you with making an informed decision. You should always seek professional advice before purchasing a buy-to-let, as with the 3% stamp duty surcharge it can be expensive to change the ownership. It is also important to seek professional tax advice in advance of selling your property.

There are also many tax reliefs available, when purchasing and disposing a property. These can be utilised to help mitigate any potential tax charge, so the sooner you seek specialist property tax advice the potential greater tax saving could be had.

 


We at Rawlinson Pryde & Partners are able to either undertake a property portfolio review or offer property tax advice before you make a property purchase. We have already advised several of our clients resulting in them saving much more taxation than our fees in year 1.

If you own a property with a married partner or civil partner, we can assist you with changing the ownership to reduce your tax charge.

If you are selling a property you may wish to consider the timing of this to make use of your annual exemptions and tax bandings.

We have also produced these 2 helpful guides relating to property taxation on individuals. We plan to produce a further guide for limited companies.




Depending on your circumstances there are ways to carry out some property tax planning, whether prior to buying a buy-to-let or after buying.  We would always recommend you get advice in advance of arranging finance and buying a buy-to-let as after obtaining finance it can be restrictive and costly to undo.

Techniques to reduce property taxation can include:

  1. Transferring between husband and wife.
  2. Forming a Partnership or Limited Liability Partnership (LLP)
  3. Using a Limited Company and this could include incorporating an existing business using the Ramsay case

There are benefits and drawbacks to each opportunity but with our Chartered Tax Advisers we will be able to assist you with coming up with property tax planning advice. It is imperative to obtain property tax planning advice in advance of a transaction click here to contact us.