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What's inside the guide?

With property investors no longer able to deduct mortgage interest from their rental income, it’s never been more important for you to understand the tax implications that impact your clients.

Working with EY, we’ve produced the buy to let ‘Tax Guide: UK tax relief on finance costs’ which turns the spotlight on the tax issues affecting the buy to let market, supporting you in understanding the decisions landlords need to make about running their rental businesses.

Roger Morris, Group Lending Engagement Director

Roger Morris, Group Lending Engagement Director

“Restriction of relief has had a material effect on the cash flow position of buy to let rental businesses...”

Executive Summary

The introduction of the restriction on relief has had a material effect on the cash flow position of buy to let rental businesses and has led landlords to reconsider the way they choose to run their rental portfolio.

Many buy to let landlords have considered the use of a limited company as a holding structure for their property portfolio. A limited company is not currently subject to the same finance cost restrictions as an individual, and for many landlords UK corporation tax on rental profits can be favourable when compared to UK income tax. As such, in certain circumstances, the use of a company can alleviate some of the tax pressures faced by landlords as a result of legislative change. This is a complex area of taxation and professional advice is essential.

Download the guide to read the full executive summary

Did you know?

SDLT of up to 15% could be payable, regardless of whether a property is purchased personally, via a company or transferred to a company... although it can be as low as 0%-5% in certain non-residential transactions.

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