To set up a limited company or to not set up a limited company? That is the easy question.
Changes to the property investment sector are forcing thousands of buy-to-let landlords to regroup and adapt their investment strategies to soften the blow of their tax bill. As the years have ticked on, the sector has become more and more professionalised by property investors launching limited companies in a bid to maximise the return of their investment.
The biggest pull-factor for investors and landlords to invest as a limited company is the potential for serious savings on their annual tax bill. Putting that aside, the suitability of any investment plan is centred around its longevity. Hamptons claim that the surge in limited companies has partly been due to rising property prices and the knock-on effect this has on mortgage bills for landlords. With that in mind, the all-time record of 223,743 buy-to-let companies up and running looks to show no sign of slowing as the property market continues to leap from strength to strength.