Chartered Accountants
Property Taxation – Expectations For The Current Parliament
It’s fair to say that the last 5 years has been highly challenging for landlords with a plethora of legislation causing much higher tax and compliance costs for most. Unfortunately, it’s difficult to see that direction changing in the life of the current Parliament, particularly as the recent changes do not appear to have quelled the appetite for property investment. Five years ago, EQ acted for around 700 landlords and today that figure sits at over 1,025. That growth stems mainly from the recruitment of existing landlords demanding more specialist advice but many new entrants are also among that number.
The government will perhaps find it challenging to do much more in income tax terms but we wonder whether unpleasant surprises might come in one or more of the following forms : –
- A higher corporation tax rate for property investment companies
- An annual wealth tax based on properties held
- Removal of some of the restructuring possibilities
- Further increases to ADS
Property investment still provides potentially attractive returns, but the importance of the right structure and ownership has never been more important hence why it’s essential to have advisers who have experience and imagination to create a more level playing field for property owners.
For any landlord who is unsure of their next move, contact one of our EQ Property Taxperts on [email protected] for a free initial meeting, 1,025 landlords can’t be wrong!
