In the Summer Budget 2015, the Chancellor announced changes to the way landlords can claim tax relief on their mortgage finance costs. From 2020 to 2021 all financing costs incurred by a landlord, e.g mortgage interest will be given as a basic rate tax reduction.
These changes have meant that Limited company buy to let products have been popular for a number of years now, with new incorporations set up for the purpose of holding buy-to-let properties more tax-efficient, allowing landlords to claim 100% of the mortgage interest as an allowable expense.
Transfer existing property to a Limited Company
Of course, many landlords who have an existing mortgage in their personal name are now missing out on tax relief. In most cases moving your property into a limited company may incur additional costs like stamp duty and capital gain tax.
We are currently working with a lender who, on a case-by-case basis, can consider requests to transfer an existing mortgage in a borrower’s personal name, to that of a limited company set up by the borrower to hold the
What’s more, they’ve advised that there may not be Stamp Duty or Capital Gains Tax to pay however this is something that you the borrower will need to confirm with their accountant/ tax specialist.
If you would like to discuss moving existing property into a limited company, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.