Buy to let landlords using tax loophole to invest in property

In an attempt to avoid the new rules announced by the Chancellor in 2015, where landlords face new limits on how much of their mortgage interest payments they can offset against tax bills, more than six in ten landlords are now investing in properties through limited companies.

The new rules will not apply to landlords who invest through a company rather than as an individual, giving landlords a tax loophole through which to avoid the curbs on buy to let.

According to the research, 63 per cent of applications for landlord loans are being put through a business, up from 21 per cent before the announcement was made.

If you are a landlord with properties with significant mortgages or loans, you could soon see a major increase in the amount of income tax you are expected to pay. Contact Steve Govey or your usual Beavis Morgan Partner if you would like to explore your planning options in more detail.

Further reading:

Landlords fight Government over tax changes

Judge dismisses buy-to-let legal challenge