One of the most common topics of conversation with both amateur through to the experienced portfolio landlords is whether now is the right time to incorporate their property business.
Michael Lloyds article in the Mortgage Introducer magazine quotes Andrew Turner of Commercial Trust making some very valid points:
“Upon face value, many landlords are perhaps seeing the headlines and are considering incorporating their property investments, as limited companies are taxed differently to individuals.
However, taxation is a complex issue and I would urge anyone considering this move, to seek advice from a tax specialist first, to ensure that their buy to let venture would actually be better off tax-wise, in a limited company.” – Andrew Turner of Commercial Trust
This clearly indicates that moving to a limited company structure may not be the right solution for everyone and is something that really does need careful consideration.
Here at Clifford Davis Financial Planning we work closely with local tax experts to help our clients make an informed choice. Tax is an important driver but we feel there are also other considerations.
If you would like some more information about the other choices to be made as a buy-to-let landlord have a look at our but-to-let mortgage section of our website or contact us to see how we can help
