Tax changes is your portfolio ready?
Buy-to-let properties may soon become a burden on your tax return, the once coveted buy-to-let may radically be increasing your Personal Tax under the Reforms that then Chancellor George Osborne introduced
Transferring your properties into a limited company has its benefits but may become an expensive procedure when you factor in costs such as capital gains, Bank Re-finance costs and all the other costs that goes with property transfers.
In some cases HMRC grants some relief to these costs under S162 but this is a technical matter and we recommend seeking accountants advice if its an feasible & applicable approach in relation to your circumstances.
Selling your assets may sometimes be the best option especially when rents will be pushing you into a higher tax bracket that increases your taxes considerably, if your properties are let on AST’s this limits your market so its best for the value to request your tenants to leave, but this can start costing money and creates void periods while your asset sits on the market to be sold you can try attracting cash buying services alike, that may purchase properties with tenants in situ.
Dealing with the changes will be a complicated affair and Landlords may will need to take control sooner rather than later this is now on the forefront of most accountants tasks and early planning may pay off in the long run.