Here in this Property Question Time, Tony Gimple discusses how being pushed into the 40% higher tax bracket could lead to a much higher tax bill due to Section 24, along with a discussion on why it is not always sensible to become a Ltd company.
Questions in this episode include:
- After taking early retirement but still working full time in my property business, I’m now a higher rate tax payer and my accountant says that by 2020/21 my tax bill will be higher than my profit. Could this be true?
- A lot of my Buy To Let mortgages are coming to the end of their terms. Is it true that because of Section 24 and the new Prudential Regulation Authority buy-to-let rules, lenders now want to see business plans and mortgages for all properties? Is is easier if I am a Ltd company?