TRIPLE LOCK ON LANDLORDS
If you’re a landlord coping with the 3% boost on SDLT, the loss of W&T allowance and the transitional 20% cap on BLT interest expense, there’s no time like the present to reflect on the past and think about your future – your financial future, that is.
In spite of the punitive changes for landlords over the last few budgets, investment property still remains a lucrative strategy for investors. However, it is now more important than ever to plan effectively and proactively to structure your investments. Review your intentions regarding investments, consider how you’re going to structure your finances, note any CGT or IHT you may be liable for as part of your exit strategy and think about the implications of lending. These steps could potentially mitigate the financial strain of potentially burdensome taxes and also minimize risk of investment while maximizing returns.
In addition, landlords operating residential property investment through companies should note that if your property was worth over £500k by 05/04/2017 or when brought after this date, you must file an ATED return with HMRC by 30 April 2018 for the 2018-19 tax year.
Letting the property out to third party tenants? You can apply for relief. However, if your property is occupied by a connected person, the ATED becomes due. It’s important to remember that ATED is a very punitive tax, and penalties for non-compliance are severe.
DUA are experts at advising you a bespoke solution to structure your investments efficiently from both a commercial and wealth maximization strategy viewpoint. We understand your objectives and work with you to build up your property portfolio. We’ve even partnered with the State Bank of India (UK) to host a property event exploring everything from buy-to-let funding to structuring property investments. We are dedicated to assisting you with each aspect of your finances and offering you bespoke advice that is thorough and insightful.