Talk to a property tax specialist and reap the benefit of potentially six-figure tax savings, says Tony Byrne, managing director of Wealth & Tax Management.
In my experience property entrepreneurs are successful at building profitable property portfolios and creating wealth but rarely do they do so in a tax-efficient manner. The continuous tax increases and legislation imposed on buy to let landlords in recent years has exposed this tax inefficiency even more.
Of course, this isn’t entirely the fault of property entrepreneurs themselves. They are quite rightly busy focussed on building their property wealth.
Some landlords have decided to form limited companies and have transferred their property portfolios in full or in part into such structures. However, such a strategy is not right for everyone.
Each case has to be judged on its merits. Top class tax advice from tax professionals is essential.
Companies House records show that less than 1% of property companies have multiple share classes. This is strong evidence that 99% of property companies have not been created as smart companies but rather as dumb ones.
Essentially the problem with residential property is that there is no tax shelter for it as such. For example, you cannot invest directly in residential property through a pension or an ISA unless it is a specialist fund known as a REIT, which is uncommon.
You can invest in commercial property via a pension scheme such as a SIPP (Self Invested Personal Pension) or a SSAS (Small Self Administered Scheme) but there are limits on pension contributions and the size of your pension before exorbitantly high tax charges start to bite in the form of the Lifetime Allowance.
So what can you do? You need to speak to a property tax specialist, preferably one who is personally experienced in investing in property and who has a wide knowledge of the many tax planning techniques available to property entrepreneurs.
The potential tax savings are significant and often amount to six figures or more.
If you are interested in discussing property tax mitigation techniques why not benefit from a one-hour Discovery Meeting either at our offices or by a video conference call at our expense worth £270 to each of the first three readers who contact us before 30 June 2021? You know it makes sense*. We offer a great cup of coffee too – but, unfortunately, not a virtual one.
Ring us on 01908 523740 or for free on 0800 980 4516 or email firstname.lastname@example.org.
* The contents of this article are for information purposes only and do not constitute individual advice. The value of your investments can fall as well as rise and is not guaranteed. All information is based on our current understanding of taxation, legislation and regulations in the current tax year. Any levels and bases of and reliefs from taxation are subject to change.