Landlords – Thinking about moving your buy to lets into a Ltd company? | R3 Mortgages
Residential & Commercial Finance Specialists

Landlords – Thinking about moving your buy to lets into a Ltd company?

WARNING

BUY-TO-LETIf the current rush to beat the stamp duty increase on additional properties was not enough, further tax changes are on the way which will affect the UK’s buy to let market. As property investors seek ways to minimise the impact that the changes phased in from 2017 will bring, a frequently asked question is, “Should I move my existing buy to let property portfolio from my personal name into a limited company?”.

The answer to this questionis yes, but only if you want to potentially end up with a large tax bill. Ultimately, this would class as a sale and acquisition by the limited company which could result in a hefty personal capital gains tax bill as well as the associated stamp duty.

Although there are many advantages to limited company structures especially for higher and additional rate tax payers, I would strongly suggest speaking to your accountant or a tax professional to discuss what is right for you. If you jump on the bandwagon without doing your homework, you could be making a costly mistake.