Over the years, there has been a sizeable shift toward purchasing investment property, essentially ‘buy to let’ property, through limited companies. This shift has been driven primarily by the desire for both homeowners and landlords to reduce transaction costs, and it seems that the primary impetus behind this development falls mainly down to the recent changes and new rules governing tax relief for mortgages.
Back in 2015, these were first executed by George Osborne, who served as chancellor of the exchequer. They were implemented on a tiered system with the intention of reducing the number of individuals operating as private landlords in the United Kingdom.
The situation evolved to the point where, at the beginning of April 2020, private landlords would no longer be able to deduct any mortgage payments from the income they get from their rentals to lower their overall tax liability.
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