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Can a lettings company reduce your tax bill?

Shared from Tax Insider: Can a lettings company reduce your tax bill?
By Meg Saksida, June 2022

Meg Saksida considers whether the incorporation of a property rental business is worth it from a tax perspective.  

Holding a property rental business personally can have several drawbacks, not least of which being the comparably high tax rate.  

Unlimited liability is quite a scary prospect in these litigious days, and with the inability to offset mortgage interest at higher and additional rates coupled with income tax payable at up to 45%, is it any wonder that many landlords are considering the possibility of a corporate wrapper for their property businesses? At 19% corporation tax, a letting company should surely decrease your tax bill? However, as Shakespeare said, “all that glitters is not [always] gold”. 

Corporate comforts and complications 

(a) 19% corporation tax 

The main reason

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