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Commercial Trust have issued a warning to landlords not to rush into incorporation and to seek professional advice before doing so.Andrew Turner, chief executive at Commercial Trust, said: “Whilst it is understandable that buy-to-let landlords want to avoid paying more tax than is necessary, it is essential, as with any investment, that they fully investigate how their personal circumstances apply to buy to let taxation.“Upon face value, many landlords are perhaps seeing the headlines and are considering incorporating their property investments, as limited companies are taxed differently to individuals.
“However, taxation is a complex issue and I would urge anyone considering this move, to seek advice from a tax specialist first, to ensure that their buy to let venture would actually be better off tax-wise, in a limited company.
“The message should be clear to landlords thinking of taking the limited company option, to investigate fully first.”Full/source storyI find the timing of this announcement interesting, especially in the light of yesterday's publication of the Government Think Tank paper that recommends further taxation of landlords to stop them hoovering up properties that could be purchased by first time buyers.At Property Tribes we have always recommended that landlords seek professional, independent, and impartial advice as to what is the correct structure for them and their individual situation. Our tax partner, Rental Income Tax Advisors, are available to advise landlords and can be contacted on 0800 1 22 33 57.SEE ALSO - Warning of closure of ltd. co. loopholeUP NEXT - Tax reform could hit incorporated landlordsDON'T MISS - The BIG tax issue: Should I incorporate?NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Ltd Company formation is not for every one
S24 has made me take stock of my Bussiness
But S24 is not the reason I started a Company but as a side issue it helps
I use it for the following reasons at age 60
1 Succession Planning
2 Pension Planning
3 a Salary for my wife
4 it helps with S24
5 Directors loans steady stream of Tax free income to myself although the company pays 19%
For older landlords I can see advantages
for younger Landlords I see the possibility of a Tax shelter from S24 But its not as tax efficient as pre s24 days
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Nothing new from our perspective, as we've been saying for ages that incorporation is the worst and most expensive mistake landlords will ever make.
An even bigger issue is mortgage brokers and lenders giving tax advice they are not qualified or indemnified to give, which in time will be called mis-selling.
Less Tax For Landlords
0203 735 2940
Tony,Could you start a new thread on why, in your option, "incorporation is the worst and most expensive mistake landlords will ever make".I would be interested to hear your views on this.
All done, but the site keeps asking me to verify that I'm not a robot.
It's an anti-spam measure. Just tick the box.
Tony has kindly posted his new thread on this topic:Why BTL incorporation is an expensive mistake