There have been some recent significant tax changes on how property portfolios will be taxed in the future. With the recent removal of the wear & tear allowance and the proposed interest restrictions to take place from 2017, we expect property investors to face increased tax liabilities. We are currently supporting many of our clients in restructuring their property portfolios to ensure that the tax efficient and where possible can circumvent the recent changes. In our experience, there is not one solution that can work for all investors and each case will depend on the exact circumstances. Key points to consider are the latent capital gains within the property portfolio and whether the investor requires access to the income.
How we can help you?
There are a number of planning techniques which may be used to mitigate the impact of the proposed tax changes. In our experience, investors should be looking at planning now and consider all of the different options include the use of trusts, using different family members, the use of companies. We have provided bespoke plans to a number of property investors working closely with their lawyers and bankers to ensure that the optimal structure is implemented.