- Property Tax Solutions
Incorporate to keep your mortgage interest relief?

This changes in the mortgage interest rules currently only affect individual landlords. There have been many articles on buying buy-to-let properties in a company or even transferring your existing portfolio to a company.
Whilst a company owing buy-to-let properties will be able to continue to declare rental income after deducting mortgage interest in full, there are other things to consider:
Mortgage rates for companies are often considerably higher than for the individual landlord
There can be a significant stamp duty charge on transferring existing buy-to-let properties to a company
A liability to capital gains tax can arise on transferring existing buy-to-let properties to a company
There will be additional administrative burdens of running a company in addition to the company being bound by company law
Companies do not benefit from an annual capital gains tax allowance
There are positives:
Lower rates of corporation tax
Company shareholders currently benefit from a £2,000 tax-free dividend allowance
This changes in the mortgage interest rule currently only affect individual landlords. There have been many articles on buying buy-to-let properties in a company or even transferring your existing portfolio to a company.
A salary could be paid to the director/employee to utilise their tax-free personal allowances. It is imperative that professional advice is sought before making any decisions.