Friday, 4 January 2019
Convential wisdown (i.e. internet forums) is indeed pretty in favour of using a Limited Company for buy to let properties, and there are some theoretical advantages of course, mostly the full deduction of mortgage interest as a cost, when calculating the rental profit for higher rate taxpayers (who would otherwise only get basic rate tax relief).
However, there are disadvantages in practice (or at least lack of advantages), which the internet forums tend to gloss over, such as:
In general, we would say that for someone wanting to build a portfolio of 3+ buy to let properties, a Ltd Co might be worth doing, though the mortgage rates would still be less good than for direct ownership. But for only one property it can seem like a lot of hassle for little, if any gain.
Having said all that, we DO arrange such mortgages, so if you are looking to purchase (or remortgage) a buy to let property either within or outside a Limited Company then just get in touch.