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There is more to Landlord Planning than planning permission!

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If you have a number of buy-to-let properties held in your own name, then this short piece could literally save you and your estate tens, if not hundreds of thousands of pounds. Interested?

Well we have once again been joined by Deri Ap Hywel of Maplebrook Wills to explain a little about what this all means to YOU!

 

Deri Ap Hywel

Deri Ap Hywel

Director at Maplebrook Wills

What’s the problem?

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.

What’s the solution?

I will not bore you with all the intricate details here, but our Professional Landlord Planning solution is a three stage process and takes three years from start to finish. It involves:

  • Partnership Stage ( lasts at least 1 year )
  • Incorporation Stage ( properties into a Ltd Company and last for 2 years )
  • Trust stage ( thereafter )

At the end of this process your property portfolio will be free of inheritance tax, without triggering any charges to stamp duty or capital gains tax. Furthermore, mortgage interest relief can be claimed against corporation tax.

What’s the cost?

Costs will be confirmed in a free-of-charge feasibility report as an accurate figure cannot be given without a full appraisal of an individual’s circumstances.

Too good to be true?

Let’s find out! I would be happy to talk you through the process and see what it could do for you. Please contact [email protected] or 07414 645959. What have you got to lose?

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