More than half of landlords are planning to purchase further buy-to-lets through limited companies, Mortgages for Business has found.
The broker’s latest Property Investor Survey found that 54% would opt for the incorporated route when making purchases while 16% said they would do it as an individual.
The data comes ahead of the impending rolling back of mortgage interest relief from April 2017 for individual landlords.
The poll of 283 landlords found 60% would be directly affected by income tax relief changes, while 29% said they would not be, and 11% still didn’t know if the changes would affect them directly.
David Whittaker, chief executive of Mortgages for Business, said: “The percentages feel about right for the market in general and it’s certainly been a tough 18 months or so for landlords, so it’s encouraging to learn that the majority are getting to grips with changes that will dramatically alter the way they operate.
“We are still encouraging landlords who haven’t already taken professional advice on the matter to do so ASAP, as some may find that the new formula will tip them into the next tax bracket leaving them worse off.
“The new regime starts in April, so there’s not much time left to make strategic decisions and take action.”
source http://blog.evolutionproperties.co.uk/2017/01/05/landlords-planning-more-limited-company-purchases-to-get-round-buy-to-let-changes/
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