Tax Planning For UK Landlords
Effective landlord tax planning utilises all available tax breaks legislation provides for. 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 legitimate ownership structures that your average accountant might never consider bringing to your attention.
Prior to introducing the Section 24 legislation “restricting finance cost relief for private landlords to the basic rate of tax” in his Summer 2015 Budget, the Chancellor at that time (George Osborne) commissioned the OBR (Office of Budget Responsibility) to produce an impact report. That report suggested that 19% of all private sector residential landlords would be affected by the legislation and pay more tax. Therefore, we can deduce that circa 400,000 UK landlords have mortgages are higher rate tax-payers.
The Property118 Tax team are specialists in advising on incorporation relief, but not all landlords qualify for reliefs to make a viable case to proceed down this path. Therefore, Property118 and Cotswold Barristers also recommend a variety of other ownership structures. All recommendations are bespoke, we do not believe in a ‘one-size-fits-all’ approach.
Property118 is unique in terms of offering tax planning consultations for a fixed fee of £400 and a guarantee of total satisfaction or your money back.
Our specialist landlord tax consultants provide guidance on the pros and cons of sole ownership, joint ownership, Partnerships, LLP’s, Limited Companies and Plc.’s as well as transitional reliefs available to switch between these various ownership structures. Our tax and legal team can also provide guidance on non-resident status and benefits as well as property related business continuity, legacy and inheritance tax planning.
Our barristers each carry £10,000,000 of Professional Indemnity insurance and prepare each case as if it will be investigated by HMRC.
'Having incorporated nearly a year ago, I just wanted to congratulate P118 and their support team for their on-going advice regarding post-incorporation matters such as ATED & re-financing. It's reassuring to know their follow up service doesn't drop off a cliff once the ink is dry!'David
What you can expect
from a Property118 Tax
There is no substitute for bespoke professional advice, so please DO NOT take any action based on the contents of this eBook without completing a full tax planning consultation with us.
Tax planning consultations with Property118 (in association with Cotswold Barristers) come with a guarantee of total satisfaction or a full refund of the £400 consultation fee.
The consultation process includes all the following:
- Know Your Customer checks
- Software to analyse the viability of incorporating your existing rental property business, if you have one
- Email correspondence with your Property118 consultant and Cotswold Barristers, as required
- A video conference with your Property118 Tax Consultant. We are very happy for you to invite your existing professional advisers to this meeting
- An action plan confirming ‘next steps’ and a link to the recording of the video conference
Landlord Tax Consultations
Advice and implementation provided by a practising Barrister-At-Law
with £10,000,000 of Professional Indemnity Insurance