Incorporation myths
There are many myths that have been generated about incorporation of a property portfolio.
Tax Traps of Incorporation of Buy to Let 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.
Time to Incorporate
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.
Mitigation of Inheritance tax
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.
When is it a Good time to Incorporate a Property Portfolio
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.
A presentation and Q&A on Property and Inheritance Tax Planning
On 21 Oct 2021 at 19:00 JMS Accounting will make a presentation on Inheritance Tax (IHT) Planning with special focus on Property.
Incorporation – free 30 minute deep dive consultation
Are you interested in learning if Incorporation is the right path for your property business?