07.04.2017 A sharp rise in number of company landlords

07.04.2017 A sharp rise in number of company landlords

Companies own one in five homes that are let out in the UK. 27% of London properties are owned by a company landlord. More buy-to-let investors acquire properties as a limited company to make it more tax efficient. Changes to the income tax relief on mortgage interest payments started in April 2017. The tax change introduced in 2015 removes landlords’ ability to deduct the cost of their mortgage interest from their rental income when they calculate a taxable profit. This means that for some landlords, the payable tax rate might exceed 100%, meaning that more than all of their profit is paid in tax, making their investment financially unviable and forcing them to raise rents or sell their properties. For more information please contact Tatiana Svetlova on tsvetlova@svetlovallp.com.

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