How we advised a Vauxhall Nine Elms new-build landlord on structure, £8,100 saving
Client B, a higher-rate taxpayer, was buying two new-build flats in the Nine Elms development as buy-to-let investments. He'd planned to buy them personally, not realising how the Section 24 restriction would affect his higher-rate position, and hadn't considered a company structure or the significant leasehold service charges on the new towers.
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. We set up the SPV, advised on the SDLT (additional-dwelling surcharge applying either way), structured the purchases, and clarified the deductible-versus-capital treatment of the substantial new-build service charges.