How we advised a Colindale new-build landlord on structure and SDLT, £7,800 saving
Client B, a higher-rate taxpayer, was buying two off-plan new-build flats in Colindale as buy-to-let investments. He'd intended to buy them personally as he had his first flat, not realising the Section 24 restriction and the additional-dwelling SDLT surcharge would significantly affect the returns, and hadn't considered whether a company structure would be better for a growing portfolio.
We modelled buying the two new flats through an SPV company versus personally. The company route gave full mortgage interest deductibility (versus the Section 24 personal restriction) and Corporation Tax on rental profit rather than his 40% personal rate, and provided a cleaner base for further portfolio growth. We set up the SPV, advised on the SDLT position (including the additional-dwelling surcharge applying either way), and structured the off-plan purchases correctly.