LETTING & ESTATE AGENT

Following the government’s update on 13th May 2020 regarding home moving in England during the Covid-19 outbreak, we are pleased to announce our branches in England will start re-opening their doors for booked appointments over the coming weeks. Health and safety remains our main priority, and a number of strict measures will be put in place to protect our staff and customers. Our offices in Scotland and Wales will continue to support customers from home. Visit our branch page to find contact details for your local office.

Landlords look to incorporate to secure tax reliefs

Landlords look to incorporate to secure tax reliefs

Landlords are increasingly buying property through a company, as a means of safeguarding future tax reliefs.

Landlords are doing this ahead of the coming changes in April 2017, where  mortgage interest relief will gradually be restricted to the basic rate of tax. As such, a landlord getting tax relief at the higher-rates (45% and 40%) will only be able to claim relief against letting profits at the basic 20% rate instead.

In addition to this, from April 2016 'Wear and Tear' allowance will be restricted, and you will only be able to claim tax relief on the cost of actually replacing furniture. Currently you can offset 10% of your rental income against profits as a notional allowance for replacing furniture and redecorating.

One piece of positive news for those renting out properties through a company will be that corporation tax is set to be reduced, hence the reasons why landlords are looking to incorporate. So much so, that mortgage applications made through a limited company have trebled in September compared to the same month in 2014. Across the market as a whole, an average of 5,000 mortgages per month were issues through companies in July, August and September.