01732446462 info@notjusttax.co.uk

Mortgages

As a regulated business by the FCA we search the market for the right Buy-to-Let mortgage for your business whether that be personal or limited company (Ltd). 

  • With the new tax changes taking place in April 2017, higher rate tax payers would need to consider buying the next buy-to-let investment through a Limited Company, known as a special purpose vehicle (SPV).
  • The reason why this is more popular is due to the tax burden on individual tax payers where interest on the mortgage will gradually faze out by 2020 for higher rate tax payers.
  • A Buy-to-Let property is a long term investment and a great tool to use in the future.  By holding this asset within a company, you don't need to draw down on earnings, merely keep them in the company and re-invest, paying 20% corporation tax currently with a 17% in the future.
  • The main benefits by holding a buy-to-let property through a limited company are:

Company’s (SPV’s) are taxed at 20%, to go down to 17% by 2020.  Income tax rates are at 20%,40% and 45%

Interest on the loan is tax deductible for the business.  From April 2017, interest on personal BTL mortgages will gradually faze out for the higher rate tax payer, which means higher personal tax liability.Additional expenses can be put through the Ltd Company

Life Insurance can be applied to the company, therefore the director has the company pay for his/her insurance policy – no BIK charge.

A, B and C shares can be issued to give rights to capital but not rights to shares, therefore gifting part of the BTL portfolio to over family members, for IHT planning.

Having family members on board as officers of the LTD.  Paying a salary from surplus income to family members that aren’t using their personal allowances.

Speak to us about buying through a Limited Company or whether you are best to buy personally.

  acca 

Regulated for a range of investment business activities by the Association of Chartered Certified Accountants,

 

 

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