Mortgage Tax Relief -The Dangers of Buying Property in Your Own Name

Owning via a Limited Company Has Never Made More Sense

Like most buy-to-let investors, most of my own buy-to-let properties were purchased in my name. Before the global crash it was easy to get finance as an individual but hard to get it as a company without giving personal guarantees. There were probably twenty lenders for personal borrowing for every one that would lend to a limited company. Few investors took the company route when buying.

Fast forward to 2015 and the Government has changed the rules on tax relief for personal buy-to-let properties when claiming mortgage interest. Actually, it’s confusing to call it a ‘relief’ – it isn’t; it’s a chargeable business cost. The ability to add this cost of borrowing to the rest of your business costs when operating as a landlord is now being phased out.

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