How does the tax changes affect you?
In particular Section 24 mortgage interest relief cap?
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You should be aware by now that mortgage interest costs will not be allowed to be offset against your residential property income. We wrote an article that illustrated how the budget changes will affect most landlords in the UK that have mortgages from our previous article
There are a number of solutions that many people have identified.
One of the suggestions is to incorporate your property business into a limited company. There are ways of incorporating your properties but you need to consider three things 1) the cost of refinancing your properties in the limited company 2) the Capital Gains Tax (CGT) of selling properties and 3) Stamp Duty Land Tax (SDLT) as you will be transferring properties into a limited company and therefore SDLT applies.
We wrote an article to illustrate how you can incorporate your property business into a limited company without paying CGT or SDLT using a partnership structure. See our article for more details.
However, before you jump off into the world of incorporation you need to ensure that the finance costs (re-mortgage) does not outweigh the tax benefits. We wrote another article that highlighted why many property investors should not look to incorporate their property business. See our article for more details