There are several ways to split rental income for tax planning purposes, the two most popular being a Declaration of Trust or one of many form of Partnership. The concept is to transfer rental profits to a lower rate tax-payer. For example, one spouse may pay tax at a higher rate than the other. This form of tax planning is particularly popular between spouses but can also be used for business continuity purposes. However, before rushing into this you need to carefully consi

Solutions for landlords with a Section 24 tax problem. First though, let's take a look at what Section 24 tax is and why it's so unfair. The following Case Study explains why so many property rental business owners are considering incorporation, by comparing the tax position of a private landlord vs that of a private hotelier. Let’s assume that both businesses own assets worth £2,000,000 and have 75% LTV mortgages secured on them at an interest rate of 5%. In other words,

I have held the lease on my first floor flat for the past 21 years, extending it in 2013. The Freeholder owns and lets out the ground floor flat. I have struggled with the Freeholders approach to managing my Lease. Standing charges include a peppercorn rent, £100 paid toward the Maintenance Fund and 50% of the building Insurance. The 'accounts' are a joke and I often have to correct them, the Management Fund is supposed to be kept in a separate account and any interest added. Int