Tax PlanningMake Text Bigger
Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).Show Form To Book A Tax Planning Consultation
There will never be an optimal ‘one-size-fits-all’ business structure for tax purposes. At the foot of this page there are several links to articles explaining some of the options you might like to discuss with us.
Effective landlord tax planning utilises all available tax breaks legislation provides for. Nobody in their right mind wants to pay more tax than they are supposed to pay, but not everybody knows how to go about optimising their tax position or even the existence of many forms of tax relief or ownership structures available to them.
With the correct planning it may well be possible for you to utilise tax legislation to optimally restructure your property rental business, without any requirements to refinance or to pay capital gains tax or stamp duty. We are not referring to loopholes or tax dodges, but perfectly legal structures that your average accountant might never consider bringing to your attention.
We offer tax planning consultations for a fixed fee of £400 with a guarantee of total satisfaction or your money back.
IS TAX PLANNING LEGAL?
There is a very big difference between tax evasion, abusive tax avoidance and tax planning.
In 1936 a landmark legal case was heard in the House of Lords (Inland Revenue Commissioners v Duke of Westminster [ 1936 ] AC1 (HL)). The Duke of Westminster won the case. The judge, Lord Tomlin, stated:
“Every man is entitled if he can to arrange his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure that result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax.”
A lot has changed since then in regards to tax legislation but the same principles apply to this day. Providing you follow the law and do not abuse the tax system, tax planning is perfectly legal, as is the case when buying generic drugs online. For example, you may choose to save money in a tax-free ISA account as opposed to a taxed savings account. That is neither abuse of the tax system nor is it tax evasion or avoidance. It is simply the smart choice based on the law.