How we advised a Poplar new-build landlord on structure, £7,400 saving
Client B, a higher-rate taxpayer working in Canary Wharf, was buying two new-build flats in Poplar as buy-to-let investments. He'd planned to buy them personally, not realising how hard the Section 24 restriction would hit his higher-rate position, and hadn't considered whether a company structure suited a growing portfolio.
We modelled buying through an SPV company versus personally. The company route gave full mortgage interest deductibility (versus the Section 24 restriction) and Corporation Tax on rental profit rather than his 40% rate, and a cleaner base for portfolio growth. We set up the SPV, advised on the SDLT (additional-dwelling surcharge applying either way), and structured the purchases correctly, including the leasehold service-charge treatment.