13th
Sep 2022
A buy to let company creation service states there is an explosion in numbers of landlords switching to become tax saving businesses.
The service claims it’s seen two and a half times the number of landlords incorporating this year up to August 31st compared to the previous 12 month period.
It also reports that there has been an average 11 per cent rise in incorporations finalised month-on month since January.
In the previous 12 months to August 2022, the number of landlords starting limited companies had doubled.
The chief executive of the service, says: “Just as we’re seeing an uptick in interest from investors looking to purchase energy-efficient, new build properties, they are also turning to limited company structures to optimise their finances. From tax efficiencies to personal liability, there are many good reasons why limited company investing makes good business sense, but ultimately it comes down to efficiency.
“Efficiency is key to investing sustainably, responsibly and profitably. In tougher economic times, the ability for landlords to optimise their buy-to-let portfolios for the long-term is proving crucial and, as our strong company creation numbers month-on-month prove.”
At the beginning of the year the service found that 81 per cent of UK landlords have decided to have at least a quarter of their portfolios in limited companies, and 79 per cent of these did so to offset the impact of the inflation crisis and a better business model rather than a personal investment in buy-to-let properties.
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