A question we often get asked by clients is should I buy a property through a limited company. This is reflected in recent figures by estate agents Hamptons International which shows an almost doubling in the last few years of homes being rented out through corporate structures, to nearly 20% of rentals.
The main reason behind using this structure, but not always, is the restriction in mortgage interest relief for people renting property personally. From 2017, individuals paying mortgages for buy to let properties will gradually have their tax relief reduced until 2021 where it will be reduced, down to a basic rate of income tax relief.
Whilst this structure currently works well for most situations , there is always the risk that new legislation could be introduced which would mitigate any benefits a corporate structure brings.
At Sherwin Currid Accountancy, we are experts at giving bespoke property advice specific to your circumstances, no two clients are ever alike.