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Incorporating the property business: All change?

Shared from Tax Insider: Incorporating the property business: All change?
By Lee Sharpe, May 2022

Lee Sharpe warns that putting a property portfolio into a company can be a bad idea for some, with the Spring Statement 2022 heralding leaner years ahead. 

Going back beyond the last few years, most landlords found little tax-based incentive to incorporate their property business; unless profits were very substantial, there was no or negligible tax saving to be made. That is not to say that there were not other good reasons for landlords to seriously consider incorporation. It’s just that, unlike traders, your average annual property income tax bill would likely not be one of them. 

Of course, this changed for many landlords when, in 2015, the Chancellor announced his plan to slowly squeeze out business tax relief for mortgage interest on personal residential property lettings, from 2017/18 to 2020/21 and onwards. While the government was keen at the time to point out that landlords could still get 20% basic rate tax relief on

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