Home  Blog  Landlords  Tax increases encourage landlords towards semi-commercial property

Tax increases encourage landlords towards semi-commercial property

10 April 2017 / By: / Under: Landlords

An ever-increasing number of buy-to-let landlords are turning to semi-commercial property in an attempt to sidestep tax increases.

semi-commercial propertyBy choosing to invest in mixed-use property, landlords can avoid some of the tax increases which came into effect this month.

For residential landlords, cuts to mortgage interest tax relief will be phased in from April 2017. This means that mortgage interest can no longer be deducted in full when landlords work out their profits.

There was hope from landlords that Chancellor Philip Hammond would announce a change to the planned cuts to mortgage interest tax relief in last month’s Spring Budget, but the property market was strangely absent from the Chancellor’s speech.

By investing in a commercial or semi-commercial property, landlords can benefit from different sources of income, making their property portfolio more diverse.

By expanding their portfolio to include semi-commercial property, landlords are minimising the amount they have to spend on tax, especially stamp duty.

Landlords looking to invest in buy-to-let residential property in London will have to pay a lot more in stamp duty than if they were investing in commercial property.

For more on this story, click the below link:

Landlord Today

Related Posts