Buy-to-let properties were historically held in a person’s name ( or jointly as a couple ) because of the tax benefits of doing so. You were able to offset the mortgage interest against your personal income tax, however, this benefit has now gone. Therefore many landlords are either selling up, and potentially taking a bit hit in terms of capital gains tax, or looking to incorporate their portfolio. But if this is not done in the right way, you could unwittingly be faced with a stamp duty land transaction charge, levied at 5% of the value of the portfolio.
Let’s not forget either, that the value of your property portfolio will also be included in the total value of your estate, along with your home and everything else. Therefore, when you die, your family could be hit with an enormous inheritance tax bill, and they wont have long to pay it.