Normally landlords are advised to refinance their properties as and when possible to extract as much cash out as possible and spend it on their personal leisure.
With the cost of borrowing increasing with further rate increases on the horizon, there has never been a better time to Incorporate your property portfolio, and transfer your properties from sole or joint ownership to a private limited company.
Since George Osbourne announced in his 2015 Budget of restrictions in mortgage interest relief, landlords have been racing to incorporate their property portfolios, which got the thumps up from the courts following the Ramsey Case (2013). The case itself provided the main guidance and test as to whether the landlord would qualify for Incorporation Relief. Several years forward, and whether the landlord would qualify for incorporation relief has become very subjective.
Iain Rankin from Tax Insider explores potential ways to overcome the tax and finance challenges that make the decision to incorporate not as straightforward as some landlords believe
Many portfolio landlords are interested to know what is involved in the incorporation process.
This BLOG is the result of shortening many 100s of pages of information into the summary below.
Incorporation via Beneficial Interest transfer is used predominantly in England, Wales & Northern Ireland.
Are you interested in learning if Incorporation is the right path for your property business?
There is a lot of confusion among landlords about Section 24, also known as the ‘Tenant Tax’.