There are many myths that have been generated about incorporation of a property portfolio.
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.
An investment property does not qualify for a Business Property Relief, so is added at market value on death, and Inheritance tax will be payable thereon at full market value less any charges on the investment property such as mortgages.
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.
On 21 Oct 2021 at 19:00 JMS Accounting will make a presentation on Inheritance Tax (IHT) Planning with special focus on Property.
Are you interested in learning if Incorporation is the right path for your property business?