Property Tax planning
Property tax planning can be fairly complex as it involves planning to avoid income tax, capital gains tax (CGT) and also inheritance tax (IHT). Good advice on property tax is the mitigation of all three taxes and advice for each person has to be highly individual dependent on their circumstances and desires.
Many landlords today are considering placing their portfolios into limited companies which may have income tax benefits for some people (not right for everyone) but still result in large CGT bills and large IHT liabilities. This kind of planning needs experienced property tax advice taking all three taxes into account. Even if the advice is to generate a CGT bill this can be offset by other tax-advantaged products.
As much of my income is subject to ebbs and flows of the world’s stock markets, I decided many years ago to invest a significant proportion of my personal money into property. We now have a significant portfolio of buy to let houses and flats (19) and have kept very current as to the tax implications of owning such a portfolio. Many of my clients are also landlords. I currently help and advise most of them on tax mitigation which is peculiar to landlords with large potential inheritance tax liabilities.
The changes in 2017 in buy to let taxation together with the large rise in property values means as a landlord you may face significant property tax bills should you make any changes to your portfolios both for CGT or inheritance tax planning.
For instance, you may not be aware that it is possible to place an unencumbered property into a trust or number of trusts. However, you can retain the whole income stream but avoid both inheritance tax and capital gains tax. For landlords like you, this type of advice and planning is essential.
Call us for help and advice on your property tax on a no cost or obligation basis today.
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