Property & Landlords

Property is straightforward to own and complicated to tax. The structure chosen at the start determines most of what follows.

We advise individual landlords with a single let, families with a growing portfolio, and developers building for sale. The first question is always ownership: personal, joint, partnership or limited company, each with different consequences for income tax, finance cost relief and eventual disposal.

The restriction on relief for mortgage interest continues to push higher rate taxpayers towards incorporation, but transferring existing property into a company carries its own capital gains and stamp duty costs. It is a calculation, not a rule of thumb, and we will run it for your figures.

For developers the treatment is different again: profits are trading income rather than capital gains, and VAT on new build, conversion and refurbishment work varies considerably. Getting that wrong on a scheme is expensive.

Making Tax Digital for Income Tax will require digital records and quarterly updates for most landlords above the threshold, so record keeping is worth sorting out now.

How we can help

• Personal versus company ownership compared on your numbers
• Finance cost relief and the interest restriction
• Furnished holiday lets and short term letting
• Capital gains reporting on residential disposals
• Stamp duty land tax on additional properties
• Making Tax Digital readiness for property income