Iain Rankin explores potential ways to overcome the tax and finance challenges that make the decision to incorporate not as straightforward as some landlords believe.
Many property investors are considering the option of incorporating their buy-to-let portfolios to avoid the mortgage interest relief restrictions that will be fully implemented from April 2020, which do not apply to companies.
Incorporating a property portfolio
Few individuals buy investment property without borrowing at least some of the purchase price. Obtaining tax relief on mortgage interest is, therefore, an important part of the financial decision-making process. This article does not delve into the full detail of the mortgage interest changes; it’s enough to know that with tax to be charged from 5 April 2020 on pre-interest rental profits, with
