Section 24 mortgage restrictions mean many UK buy-to-let landlords pay tax on non-existent rental profits. We help portfolio investors restructure into corporate SPVs and manage residential CGT.
Under Section 24 (Finance Act 2015), finance costs cannot be deducted as an allowable expense by individual landlords; only a basic rate 20% tax credit is permitted. For higher rate taxpayers, this creates severe tax exposure.
Limited companies retain 100% deductibility of mortgage interest as a standard financing expense, paying Corporation Tax (19%–25%) rather than personal Income Tax up to 45%.
Qualifying property businesses transferring portfolios to an SPV can roll over Capital Gains Tax into company shares under s162 TCGA 1992, avoiding immediate dry tax charges.
Where properties are held in a genuine partnership, Schedule 15 FA 2003 rules can substantially eliminate or reduce the Stamp Duty Land Tax liability upon corporate incorporation.
Any UK resident disposing of residential property with a taxable gain must report and pay HMRC within 60 days of completion. We file electronic CGT returns swiftly to prevent penalties.
We also advise commercial property investors and holiday let operators navigating legislative changes:
Speak with our chartered accountants & property specialists to assess your portfolio yields and incorporation feasibility.
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020 8432 2774