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The team at the Inverurie office were a great help when it came to selling both our cottages, we really appreciate all the effort they all went to.
T. Oliver, sale client
Changes to both tax exemptions and additional charges on second homes are increasing the financial burden on landlords.
From April 2017, the Treasury will start phasing in changes which will eventually see landlords pay tax on the entire rental income they generate from their properties.
They will not be able to deduct the cost of mortgage interest. Instead, they will benefit from a tax credit equal to 20% of the interest cost. It will mean higher-rate and additional-rate taxpayers will pay considerably more tax - and in some cases even pay tax where they make no profit.
But landlords structured as companies can earn exemptions and will continue to pay corporation tax on their profits.
Corporations may look attractive, but they only work for certain types of investors, and people have to be aware of the implications further down the line.
By offering property, legal and financial services together, we help our clients see opportunities that others can't.
Our corporate and commercial lawyers can work with our leasing specialists to advise you what structure best fits your circumstances.
If you would like to speak to one of our lettings or commercial law experts, click here.
The team at the Inverurie office were a great help when it came to selling both our cottages, we really appreciate all the effort they all went to.
T. Oliver, sale client
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