Landlords rush to incorporate ahead of tax changes
A study of Companies House and Office for National Statistics data by the Telegraph shows 4,560 property companies have been incorporated in the past three months, allowing buy-to-let property investors to avoid new taxes on rental income. The number is just over a 50% rise on the same period a year ago. Investors in the higher rate tax bracket will face new limits on their ability to offset mortgage interest against their rental income from next week. However, the rule does not apply to corporate investors who will also benefit from a lower rate of corporation tax, which is due to be cut to 17% in the tax year 2020-2021, as well as reduced CGT charges.