{"id":6027468,"date":"2019-11-14T13:15:12","date_gmt":"2019-11-14T13:15:12","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6027468"},"modified":"2019-11-14T13:15:12","modified_gmt":"2019-11-14T13:15:12","slug":"beat-the-tax-changes-more-landlords-than-ever-using-limited-companies","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/2019\/11\/14\/beat-the-tax-changes-more-landlords-than-ever-using-limited-companies\/","title":{"rendered":"Beat the tax changes: more landlords than ever using limited companies"},"content":{"rendered":"

Changes to the UK’s buy-to-let sector are pushing more landlords and investors to purchase properties through a limited company.<\/strong><\/p>\n

A recent study revealed nearly two thirds of landlords<\/a> are planning to purchase their next property investment through a private company. This has increased from 55% in the second quarter of this year. Foundation Home Loans conducted the research, carrying out 888 online interviews in September 2019 on whether landlords are planning to buy properties as an individual, in a limited company, or in the name of a partner or spouse.<\/p>\n

Landlords with larger portfolios are more likely to purchase property through a limited company, but this was only marginal. More than three fifths, or 62%, of landlords that own less than 10 properties and 65% of landlords with more than 10 properties stated they would buy through a limited company next time.<\/p>\n

Jeff Knight, director of marketing at Foundation Home Loans, commented: \u201cThe rise in limited company usage by landlords shows no sign of tailing off, particularly as we have a more professional landlord community who recognise the benefits of using such a vehicle.”<\/p><\/blockquote>\n

He added: “It\u2019s therefore perhaps no surprise to see a growing number of landlords signalling their intention to make their next purchase through a limited company.\u201d<\/p>\n

Property investment through a limited company<\/h4>\n

As there have been numerous changes across the buy-to-let sector in the past few years, more and more investors and landlords are starting to use a limited company structure<\/a> to build a sustainable portfolio. This does create extra administrative obligations; however, there are many benefits, including opportunities to take advantage of favourable tax rates.<\/p>\n

With a limited company, you\u2019re able to deploy larger amounts of capital for future investment. Additionally, family members can be involved as shareholders or directors, which can bring potential inheritance tax and capital gains tax benefits. And investors can even pay money into a personal pension, decreasing corporation tax owed.<\/p>\n

A professionalising sector<\/h4>\n

The rise in landlords and investors using a limited company for their buy-to-let investment portfolio shows the sector is continuing to professionalise. A limited company offers investors and landlords<\/a> a way to minimise the negative effects of new regulations, but there are other areas to consider, such as higher mortgage rates and reduced lender choice.<\/p>\n

Anyone can set up a limited company to operate their buy-to-let property investments, but it is best to seek professional advice before starting a limited company to help you weigh up the pros and cons.<\/p>\n","protected":false},"excerpt":{"rendered":"

Changes to the UK’s buy-to-let sector are pushing more landlords and investors to purchase properties through a limited company. A recent study revealed nearly two thirds of landlords are planning to purchase their next property investment through a private company. This has increased from 55% in the second quarter of this year. Foundation Home Loans… Read more »<\/a><\/p>\n","protected":false},"author":1982,"featured_media":17350,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4,59],"tags":[428],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/6027468"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/users\/1982"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/comments?post=6027468"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/6027468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media\/17350"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media?parent=6027468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/categories?post=6027468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/tags?post=6027468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}