According to a report by Kent Reliance building society, up to 200,000 landlords have set themselves up as corporate entities in order to avoid the government's tougher buy-to-let tax rules that come into force in April 2017.
The survey of 900 landlords found that 11 per cent have turned properties over to a lower tax rate-paying spouse or put them in a limited company. And further 500,000 landlords, 25 per cent of the total, have plans to incorporate, according to the Buy to Let Britain report.
The study also found that the average rent in the UK has hit a record high of £881 a month, and landlords indicated they intended to raise prices by 5.4 per cent – equivalent to £571 a year for households.
If you are a landlord with properties with significant mortgages or loans, you could soon see a major increase in the amount of income tax you are expected to pay.
Contact Steve Govey or your usual Beavis Morgan Partner if you would like to explore your planning options in more detail.
