Martin Aitken & Co Ltd News & Developments

Martin Aitken & Co: news and comment

Investing in residential property in 2017?

MACO buying sellingIf you are considering an investment in residential property this year, or if you already have residential property investments, you should consider the impact that the tax changes coming into play from April 2017 could have on your investment return.

We are also often asked whether to hold investment properties personally or in a company. The decision as to which option and which structure is best should be made with reference to both tax and commercial issues. 

There is no one solution that fits all and a lot will depend on the strategy you have for your property portfolio.  

Our short guide outlines the tax and financial considerations for holding residential invetsment property: hold personally or hold in a company. >Download Residential Investment Property Guide 2017

Restiction of Higher Rate Tax Relief on Finance CostsTax Property Nov 2016

From April 2017, the ability for individual landlords, and partners holding property interests through LLPs, to claim relief on mortgage interest or other finance costs will be restricted, with the available higher rate relief phased out over four years.

Full relief continues to be available for companies, which, on the face of it, may make potential incorporation of property businesses more attractive.

There's more on this in our latest Financial & Tax Acuity briefing (p11). Also featured in the article: Capital Gains Tax rates on disposals, taxation of profits and SDLT/LBTT implications. >Download the latest Financial & Tax Acuity

How can we help?

Get in touch with one of our tax experts Tricia Halliday or Derek Hanlan to arrange an appointment. They'll discuss your property strategy with you, your desired investment returns and they'll make you aware of the commercial and tax consequences of your current strategy. They'll also give your their thoughts on the alternative options and strategies to consider.

For further tax planning ideas download our Tax Planning for Life Guide which covers all facets of life (and taxes due): work, life, family and succession.

  • Tax Planning For Life 2016-17 >download the guide
  • Tax Rates 2016-17 - personal, business and other relevant tax rates for the current tax year >more
  • Tax Saving ideas for businesses: capital allowances and R&D Tax Credits >read more

 

 

Making Tax Digital Time to make the switch to the...
Scottish Budget December 2016

Related Posts