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Landlords - sole trader or corporate entity

Landlords - rental income - ethics

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I observe some accountancy firms are endeavouring to seduce landlords to become incorporated.  I am mindful of high rate tax payer landlords losing the high rate relief 25 per cent of mortgage interest being restricted to 20 per cent 2017/18 and so on. But is it ethical in the context of the welfare state yearly deficit to woo landlords in such a way ?  

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By ireallyshouldknowthisbut
17th Aug 2018 17:21

The only ethical issue is misleading such landlords that they will save tax over the whole investment cycle.

Extra tax on CGT and profit extraction is likely to dwarf interest tax savings unless prices crash, and no property investor thinks prices will crash or they would be selling up.

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Replying to ireallyshouldknowthisbut:
By Mr_awol
18th Aug 2018 11:39

Not convinced it’s such a raw deal to be honest, although it depends on the client.

In many cases a professional landlord with substantial borrowing might well be better off incorporating.

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Hallerud at Easter
17th Aug 2018 17:54

"Oh, it all makes work for the working man to do"

Fees, fees, glorious fees
Nothing quite like it it's really a breeze
So follow ,me follow, they'll surely swallow
And there let us wallow in glorious fees

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Replying to DJKL:
By lionofludesch
18th Aug 2018 10:28

You've misheard the lyrics big-style there.

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By Ruddles
18th Aug 2018 09:01

Is it ethical for someone to keep filling this forum with [email protected]?

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Replying to Ruddles:
By Tax Dragon
18th Aug 2018 11:28

True, but however much we all complain, Anonymous just won't go away.

Thanks (1)
By atleastisoundknowledgable...
18th Aug 2018 21:49

“Landlords - sole trader or corporate entity”

An unincorporated landlord isn’t a sole trader, they’re a landlord.

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