I have four buy-to-let properties in Brighton presently and am wondering whether, if I expand, I should form a company or not in respect of the tax position? If I form a company, would I pay any extra tax to put the existing properties in, and are there any other tax pitfalls I should be aware of? 

Arthur Weller replies:  

If you need to borrow to buy future properties, there is an advantage in buying them through a company, in that companies are not affected by the 'section 24' interest relief restriction rules. But there are other factors to take into account. With respect to putting your existing four properties into a company, there are three main obstacles that you need to be aware of: (a) the capital gains tax for you caused by the transfer; (b) the stamp duty land tax for the company to pay; and (c) the transfers of any existing personal mortgages to the company.