Property investors buy property with the intention of making a long-term by letting capital return whilst also generating an income from letting out those properties.
It is vital to ensure that the structure through which you hold investment properties is the right one both from a commercial and tax point of view.
The popularity of property as an investment continues and whilst buy-to-let property can bring attractive returns, the tax position in relation to property is far from straightforward. Indeed, there have been a significant number of changes to the taxation of UK property in recent years, including in relation to capital gains tax, income tax, SDLT, and inheritance tax.
If you have been holding investment property for some time, it can often be sensible to review your property investment strategy and structure to ensure that it remains appropriate and tax efficient. Likewise, if you are just starting out with property investment, it can pay to get tax advice early on.
ETC Tax can assist with options for structuring your property investments tax efficiently. There is no one solution, and it is important to consider individual circumstances.
The structure you use, whether holding properties personally, through a company, or a trust, can impact your tax liabilities. It affects income tax, capital gains tax, inheritance tax, and SDLT. The right setup can help you save money and plan more effectively for the future.
Buy-to-let properties can still be a good investment, but the tax rules have become more complex in recent years. Changes to mortgage interest relief, CGT reporting, and SDLT rates mean it’s more important than ever to get specific tax advice.
There’s no one-size-fits-all answer. Holding property through a company may offer tax savings, especially on retained profits, but it can also involve higher compliance costs. We help you weigh up the pros and cons based on your specific objectives..
You may be able to reduce your income tax by claiming allowable expenses, using a limited company structure, or making pension contributions. We can review your current setup and suggest the most tax-efficient options available to you.
With proper planning, it’s possible to reduce or delay inheritance tax when passing on property. We offer advice on things like such as lifetime gifting, use of trusts, or family investment companies to help you manage succession in a tax-efficient way.
