Four in 10 landlords are either seriously considering forming a limited company or will be looking into the option in the coming months says an industry body - but fewer than one per cent have done so to date.
The National Landlords’ Association says the low take-up may be down to the high cost of transferring property held personally into a company.
An NLA survey shows that only 31 per cent have absolutely no intention of moving their portfolio to a limited company, and that 29 per cent are undecided.
Mortgage interest relief for individual residential landlords, which will be restricted to the basic rate of income tax - 20 per cent - will begin to be phased back from April next year and is the chief reason behind the rise in interest in incorporation.
The changes will mean that landlords will no longer be able to deduct the cost of mortgage interest before declaring their taxable profit, and will instead receive a tax credit of 20 per cent of their mortgage interest costs.
Four in 10 landlords are either seriously considering forming a limited company or will be looking into the option in the coming months says an industry body - but fewer than one per cent have done so to date.
The National Landlords’ Association says the low take-up may be down to the high cost of transferring property held personally into a company.
An NLA survey shows that only 31 per cent have absolutely no intention of moving their portfolio to a limited company, and that 29 per cent are undecided.
Mortgage interest relief for individual residential landlords, which will be restricted to the basic rate of income tax - 20 per cent - will begin to be phased back from April next year and is the chief reason behind the rise in interest in incorporation.
The changes will mean that landlords will no longer be able to deduct the cost of mortgage interest before declaring their taxable profit, and will instead receive a tax credit of 20 per cent of their mortgage interest costs.
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