Landlords face IHT “ticking time bomb” but do they have to?
In an article at the weekend, The Sunday Telegraph discussed the freeze on allowances in inheritance tax and the impact this is going to have on landlords with many potentially facing hundreds of thousands of pounds additional tax. The article quotes RSM’s Chris Etherington who says “there is little they can do about it…”
But it doesn’t have to be that bad.
In an article last year, our Joint Managing Director, Raj Jiwani explored the most effective ways to minimise the IHT burden from a property portfolio, including gifting them to adult children. To read more about this click here. Further to this we then published an article discussing how to maximise the return on your investment on a property portfolio.
The upshot of these articles is that it is still possible to make money from owning a buy-to-let property portfolio but now you have to be clever in how you set the business up to ensure that you are operating your buy-to-let portfolio to maximise the benefit to you whilst ensuring that the value of the portfolio increases sufficiently so you are still making a profit in the longer term.