Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
Hello all – I am looking for some non-legally binding advice! Just your opinions and thoughts on the current market and how you would act in my situation.
By way of background I am 27 years old, own my own property which I live in and I am thinking of pursuing BTLs. Given the recent changes in tax allowances, I am strongly considering setting up a company to own the property as I fall into the 40% tax bracket. Would you recommend this for a first time buy to let investment or would this be considered too complex and therefore looked down on by major lenders? I am guessing I would also have to pledge a personal guarantee in favour of the company.
As I already own one property, I would be eligible to pay the increased stamp duty on any second purchase (3%). I have thought and done some initial reading on purchasing properties in trust for my niece whereby I (think) I would not have to pay the increased stamp duty on the purchase. Does anyone have an experience of this and in my situation should it be something I consider?
Finally, if there is no way to minimise my tax burdens would you recommend BTL to someone in my position at all given the headwinds the market is facing from legislation? Overall my gut tells me to get in now considering the fundamentals of property ownership are still looking grim for many in the UK.
All responses really appreciated!
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