New tax Changes For Landlords Next year – Where To Start?

by Readers Question

13:40 PM, 15th October 2016
About 2 years ago

New tax Changes For Landlords Next year – Where To Start?

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New tax Changes For Landlords Next year – Where To Start?

I am new to the forum so apologies if asking questions that have previously been answered. New tax Changes For Landlords Next year

I have 4 BTL’s all under my name and my wife’s name. I’m aware of the tax changes (although don’t necessarily understand all of them) for landlord’s coming into effect next year and I’ve heard of the various implications this might have.

I’ve heard of Landlord’s potentially setting up limited companies to make their BTL’s more tax effective?

I suppose my question is how do I start making assessments as to whether I should do this (if valid) or what steps can I start taking to make sure that my BTL’s are tax effective after the new laws come into place?

Probably no easy answer but grateful for any pointers.

Many Thanks

Nihar



Comments

Mark Alexander

13:43 PM, 15th October 2016
About 2 years ago

Hi Nihar

Welcome to Property118.

Everything you need to know can be found via our Tax section - LINK >>> https://www.property118.com/tax/

All the best

Mark Alexander - founder of Property118.com
.

Sean Graveney

14:22 PM, 15th October 2016
About 2 years ago

Setting up a Limited Company is a valid way around the tax changes for some people. Although you would in effect need to sell them to your company so would need to pay any Capital Gains Tax due and also Stamp Duty on the sale. So a good place to start would be to compare how much extra tax you'll pay with the help of the link on this site, how much extra you could earn from your properties by reducing costs/increasing yield, how much it would cost to sell to your limited company and how much tax you'd pay on income/dividends once in that company.

So lots to think consider! I'm sure plenty of help will be forthcoming.

Gary Nock

17:08 PM, 15th October 2016
About 2 years ago

It's not easy and each individuals circumstances are different. Unless you are a higher rate taxpayer, or likely to become one as a result of the additional "income" from BTL being added to your day job earnings- then it doesn't affect you. If it does then you need your accountant to run your last years accounts through a Ltd company scenario to see if it's worth it. We have just done it and it's borderline with 10 properties in the portfolio. However if we buy any more it will be through a Ltd company which is sitting their dormant until such time we activate it. But we are doing nothing until after the Autumn Statement to see if BTL gets hammered again - or the Osdraconian Budget measures get watered down.

Nihar Dutt

23:36 PM, 15th October 2016
About 2 years ago

Reply to the comment left by "Mark Alexander" at "15/10/2016 - 13:43":

Mark,

Thanks for your reply and pointing me to a "start" point much appreciated.

Regards

Nihar Dutt

23:37 PM, 15th October 2016
About 2 years ago

Reply to the comment left by "Sean Graveney" at "15/10/2016 - 14:22":

Thanks Sean, given me something to think about!

Nihar Dutt

23:38 PM, 15th October 2016
About 2 years ago

Reply to the comment left by "Gary Nock" at "15/10/2016 - 17:08":

Thanks Gary!


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