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 and will be in full effect for 20/21. 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 tax 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 and prohibitive to change the ownership afterwards. It is also important to seek professional tax advice in advance of selling your property.
There are also many tax reliefs available (Stamp Duty, Capital Gains Tax, Income Tax, Incorporation) 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.