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Wisteria Sectors

Landlords

More and more individuals and businesses are investing in property, due to previous investment performance and reduced returns for other forms of investments over the last few years. This is particularly in the South East of England where capital returns have significantly exceeded the income yield. However with changes to tax rules and stamp duty, landlords are now facing greater costs and complexity.

Wisteria work with many individuals and businesses in this sector, from buy-to-let property owners with one property, to investors with larger portfolios up to £40m.

Wisteria’s support these businesses with services such as:

  • Advice following the changes to mortgage interest relief
    Changes now in affect mean that landlords making interest payments on a loan will be suffering an increase in their tax liability as a result of a restriction in mortgage interest deduction. Wisteria have already advised and assisted a large number of landlords to reorganise their affairs to minimise the effect of these changes, often resulting in a more optimal solution for longer term planning at the same time.
  • Transactional advice
    Buying or selling a property, or a property holding company is often a time when tax issues come to the fore. Planning before purchase often opens up many more opportunities. Wisteria work with landlords in these circumstances to ensure their tax is minimised, their affairs are compliant and using our experience to ensure transactions progress smoothly.
  • Capital Gains Tax planning
    More and more individuals are becoming landlords by letting a property they previously occupied as they move up the property ladder. This can involve complex planning and calculations to maximise private residence relief, letting’s relief and income/gains splitting. Developed properties also come with more complexities in relation to identifying deductible costs for capital gains tax. Wisteria have extensive experience, often identifying tax planning options or ways to reduce the liability due.
  • Stamp duty issues and changes
    Recent changes to stamp duty means that individuals with multiple properties face higher tax charges. Wisteria have guided many landlords through the complexities, utilising planning to mitigate the effect of this is some circumstances.
  • Organising and reviewing mortgages
    The last few years have seen a general reduction in interest rates and as such mortgage deals have been becoming more generous. Reviewing your buy to let or umbrella mortgage arrangements on a regular basis can often save £000s over the life of the mortgage. In addition with changes to the taxation of mortgage interest, this is now more important than ever. Wisteria Financial Management have significant experience working with landlords across the UK.
  • Dealing with HMRC and tax investigations
    Following recent changed and the interaction of Land Registry and HMRC software systems, tax enquiries in relation to property are becoming more common. We are seeing more challenges in relation to private residence relief and letting deductible costs, as well as a large number of landlords who’s tax affairs are not up to date. No matter what the situation, careful dealing with HMRC is essential to ensure that the correct information is provided, and in the case tax has been underpaid that penalties and interest are negotiated to a minimum. HMRC may often also overstep their information gathering powers, so understanding the limits imposed on them and enforcing these with HMRC can often be a tricky challenge. Most of all we help clients conclude enquiries with the minimum amount of worry, cost and disruption as far as possible.
  • Tax planning for jointly owned property
    Following recent changed and the interaction of Land Registry and HMRC software systems, tax enquiries in relation to property are becoming more common. We are seeing more challenges in relation to private residence relief and letting deductible costs, as well as a large number of landlords who’s tax affairs are not up to date. No matter what the situation, careful dealing with HMRC is essential to ensure that the correct information is provided, and in the case tax has been underpaid that penalties and interest are negotiated to a minimum. HMRC may often also overstep their information gathering powers, so understanding the limits imposed on them and enforcing these with HMRC can often be a tricky challenge. Most of all we help clients conclude enquiries with the minimum amount of worry, cost and disruption as far as possible.
  • Inheritance tax planning involving property
    Inheritance tax planning is particularly challenging in this area, due to restrictions on business property relief, gifts with reservation of benefits and pre-owned asset taxes. However Wisteria regularly support clients to optimise their inheritance tax position over the longer term to ensure assets are passed on to the next generation as efficiently as possible.

Helpful information for Landlords
Landlords buy-to-let PDF