Recent figures show that becoming Ltd company is the way forward for landlords. In March 2016, 20,525 limited company loans were taken out by landlords. Since then the busiest month was June, when 13,522 loans were taken out.
According to a recent article by Kent Reliance, they estimate limited company (Ltd company) lending in 2016 could total 143,000 for the year as a whole, rising to 163,000 in 2017. Why are so many landlords setting up businesses to manage their property portfolios?
With the basic rate of tax relief landlords can claim on properties falling to 20% from April 2017, and phased out totally over the next 4 years. Until this date, landlords are y offsetting tax liability to their Ltd company, landlords can mitigate tax exposure
Your next steps
Speak to a chartered accountant; they can advise on process for managing your Ltd company status. By becoming a Ltd company, they’ll be responsibilities as a “business owner”, however, these can be explained in full.
We are aligned to a number of chartered accountants who would be very well placed to guide and advise, please call me on 020 3126 4898 or 07989 563350, or email: email@example.com