Fergus Wilson Panorama documentary – now available on iPlayer22:10 PM, 18th March 2019
About 5 days ago 93
Following the announcement in the ‘Summer Budget’ by the chancellor George Osborne that Landlords will will only be able to offset mortgage interest at the basic rate of tax (20%) by 2020, many landlords may feel there investments are under risk.
Landlords at current are allowed to view their mortgage interest as another cost, deducting it from their profits before they pay tax. Effectively meaning that some of the wealthier landlords achieve tax relief at 40% or 45%. Under the chancellors new rules this tax relief will be restricted to 20%.
Although the announcement may not be a shock to some, with the Bank of England stating that the buy-to-let market was “a risk to financial stability”, for many it was a sign that the generally unpopular buy-to-let market could potentially come under fire.
To overcome this change, many professional landlords are now looking to reduce tax by moving their existing portfolio into, or make new additions to it under a Limited Company or SPV (single or special purpose vehicle).
Challenger bank ‘Shawbrook’ has once again seen this change in the market and adapted its product range accordingly. From today, a new product has been released which allows for reduced rates for professional landlords, LLP’s and Limited Companies.
“Rates starting from 3.79% above LIBOR – available for professional landlords, LLP’s and limited companies”
With lending to Limited Companies historically quite restrictive and viewed as expensive. This new product allows Landlords to reduce their tax liability at more competitive rates.
So if you currently have a portfolio you wish to finance through a limited company, or wish to acquire new properties through one, Shawbrooks new product range may well be suited to you.
Please do not hesitate to contact me on the form below if we can assist you with this 🙂
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