Posted on February 1, 2018

Should you should hold rental property privately or through a limited company?

The answer to most of these types of questions, is it depends on your specific circumstances and requirements, but, it is worth noting that due to tax reforms it is thought that 70% of new buy ot lets are done via a new limited companies.

Transferring an existing buy to let to a company could be expensive in terms of stamp duty and any capital taxes, which will be required to transfer the ownership of the property.

Clients who hold property personally are now finding the amount of mortgage interest they can offset against tax reducing, and this will continue until just basic rate tax relief is given.

If you are married and your spouse has a lower tax rate or potential lower tax rate in the future, then you may want to consider transferring the property to your spouse.

If you have property and need assistance on the best way to hold it, please do not hesitate to get in contact with us to see how we can help.