''Bold Moves' for Real Estate sector in UK Budget' Excerpt
Wednesday 8th July 2015
'Louise Reynolds, Director of award-winning, overseas property agency, Property Venture, says property investors, both abroad and in the UK, will need to take into account the muting effect of mortgage interest tax relief, being restricted to the basic rate tax band in the future.
“This may pinch the profitability for big portfolio buy-to-let landlords, but many landlords tend to own only a handful of buy-to-let properties. So whilst this is aimed at creating a more level playing field in the UK for homebuyers alongside investors, it is unlikely to create waves.
“HMRC is to receive more funding to clamp down on those actively trying to avoid tax. Landlords abroad and in the UK have always been required to declare rental income for tax purposes, so this is really more about enforcement. Although it may be wise for some landlords, like many businesses, to revisit their business structure given the revision to dividend taxation, aimed at ‘owner-as-sole-employee’ drawing dividends rather than income from a company.’
“At the high end of the market, it remains to be seen if the change in non-dom status, whereby those who are almost permanently based in the UK will be taxed fully on worldwide income, drives any of them away or merely reduces their spending power.” '
Property Venture® is an award-winning, UK-based agency for overseas property who helps people buy investment property and holiday homes in Europe, more easily and safely than they can on their own, because we offer grounded common-sense advice.
The focus is mainly greater Europe: Poland property, UK investments, Spain property, Turkey property, Cyprus property
On the Advisory Board and a Member of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. Take a look at what our clients say
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