A recent survey announced that almost 50% of home owners wanted to become buy to let landlords, but did not understand the taxation issues.
According to the survey, 49% of those questioned said that they were interested in becoming property landlords in the next few years, with around 16% saying that they were “very interested”.
However, the survey showed that while many people were keen on starting or expanding a property portfolio to fund their retirement, less than 30% of those that took part fully understood the implications of income tax, capital gains tax or inheritance tax.
As with any investment decision it is wise to seek advice on the tax position before the investment is made. Tax professionals can suggest the optimum way to arrange your affairs, including investment property purchase, to maximise overall returns. Investing in property will need consideration for:
- income tax
- capital gains tax
- inheritance tax
It is also anticipated that with the relaxation to pension rules that many more pension holders will be looking to release cash and invest in property, either for the first time or to enhance existing property portfolios. We have already spoken to some buy to let clients who are intending to do just this, and buy more properties as part of their retirement planning.
Enhanced Wealth has been assisting clients with their buy to let requirements since the inception of the ‘buy to let’ concept. We are able to firstly provide expert advice and guidance on the best finance arrangements to fund your purchase. We are further able to provide suggestions on the tax issues you need to consider, and we can recommend competent tax advisers if required.