If you are new to buy to let investment, you may be wondering what the furore in the press surrounding Limited Company Buy to Let is all about?
The answer in one word; TAX.
Up to now many savvy investors chose the personal route to invest in buy to let because, generally, the tax advantages of investing through a Limited Company were almost always outweighed by the increased finance costs.
Thanks to tax changes announced in 2015, that’s all about to change!
In effect higher rate tax payers will only obtain a basic rate tax credit on the interest that they pay on their buy to let mortgage. Limited Companies are unaffected and what’s more Directors can take up to £5K in Dividends tax free!!!
Enhanced Wealth is an Independent Mortgage Broker with access to the whole of the Limited Company buy to let mortgage market, over 50% of which is not available direct to the public.
The good news is that the lenders are now getting on-board with the idea and increased competition, combined with more “challenger” lenders coming into the market is resulting in lower finance costs. If you want to invest through a Limited Company it’s really not difficult; the Company is just a tax wrapper and the Directors/Shareholders are personally underwritten in the usually way.
If you are a seasoned buy to let investor you may know all of this already, but are thinking of changing your investment route going forward?
New to buy to let or a seasoned investor, we can help and like to talk buy to let.
Our team are friendly and always willing to have a conversation about the best way forward for you.