A mortgage firm specialising in buy to let products says lending to landlords set up as limited companies surged in the first quarter of the year to 38,000 - that's more than the total lending to this sector in 2015.
The data, from Kent Reliance's Buy To Let Britain report, suggests the number of loans to limited companies will come close to 100,000 this year; many of these companies have been set up in recent months as landlords have 'incorporated' in a bid to reduce tax liability following changes to the fiscal regime initiated by Chancellor George Osborne.
Borrowing through a company means investors are taxed at lower corporation tax rates and can offset finance costs against rental income; offsets of this kind are being heavily restricted for 'old style' landlords who have not set up companies.
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