More landlords are incorporating to avoid paying extra tax
Mon 21 Nov 2016
Increasing numbers of landlords are looking to get around the mortgage interest relief changes by incorporating, Kent Reliance has revealed.
The lender's Buy to Let Britain report, which considers the first quarter of 2016, found that four out of ten applications for BTL mortgages have been via limited companies. They expect this figure to grow to more than half by the end of the year.
Operating through a limited company means mortgage interest relief can still be claimed, but there will still be the extra stamp duty surcharge to pay. With the rising costs of stamp duty and the mortgage relief changes, the report cautions that it is likely tenants will face increased rents as a result.
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