A few of our clients have recently asked me whether it’s worth moving their property portfolio into a limited company.

The reason for such a query being, that the government has been tapering down on the amount of interest a landlord can claim back since 6thApril 2017. In fact, from tax year 2020 it drops to 20% of finance costs (mortgage interest) after tax has been calculated on profits, unless your properties are in a limited company. If this is the case, then all 100 per cent can be claimed against profits.

What should you do then? Every landlord is different and the answer lies in their circumstances e.g. how many properties do they own, how long have they owned them etc?

 

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