Recent research suggests that almost 75% of new Buy-to-Let purchases will be via limited company structures, to avoid the tax attack on landlords. Despite almost any other type of business being able to offset finance interest, the government recently disallowed tax relief on landlord mortgage interest, in part causing rents to rocket for tenants. But limited companies that rent out can still avail of it, for now at least. But, if you are considering buying through a ltd co, or even transferring your properties, make sure you factor in:

• Stamp duty - still applies on sale/transfer
• Capital gains tax on the sale to the ltd co
• No capital gains tax personal allowance on sale by the ltd co
• Slightly higher interest rates - but that may change as more ltd co mortgages come on line
• Potentially higher accountancy fees
• Loss of financial privacy

So how much could you save? As an example, with a £100,000 mortgage, you could save £1,200pa on mortgage interest tax relief and over say ten years that will add up. But you need to factor in the other costs. Before you make a decsion, speak to an accountant or tax expert.

 Key One Property - we are on the landlord's side. 

Note: info above for general guidance and does not form tax or financial advice. Always seek professional advice before making a decision.