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The economic landscape for property investors has shifted significantly over the last five years. The introduction of higher rates of stamp duty land tax (SDLT) for additional residential property and the withdrawal of mortgage interest relief have had a noticeable impact on property investors.
With these substantial changes, a number of investors who have grown a portfolio in their own names are now looking to invest and manage the portfolio through a company. This comes with several advantages:
- Companies pay tax at 19-25% rather than 40% for higher rate taxpayers.
- By forming a company, you are able to control the timing and extent of your income tax liabilities on the income withdrawn. This can be particularly tax efficient.
- A company provides greater flexibility for family income planning, inheritance tax planning and succession planning.
If you would like to discuss the restructuring options available on your property portfolio, please contact your client partner or email advice@dunkleys.accountants
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