Landlord CR
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- Is there a way for a Private Landlord to legally transfer to a Property Business without incurring Capital Gains Tax or Stamp Duty ?
- or is there a legal way to claim Full Mortgage Interest relief as a Private BTL Landlord ?
- or is there any other solution ?
The problems we are facing :
- While our BTL Properties were sound investments from 2005 up to 2023 - the rate of interest rate rises this year , combined with Section 24 seems to have destroyed the business model entirely
- If we "sell" the Properties (to our own company) the Capital Gains Tax would be a considerable cost
- Then the Purchase of the Properties by our own company would be subject to Stamp Duty which when combined with Capital Gains Tax makes the transaction prohibitively expensive
- Mortgage companies are introducing ridiculous BTL mortgage conditions - such as EPC C ratings , term limits , and types of lets , etc , making it impossible to adapt like a business would
- Even though we are compliant on all aspects - The Renters Reform Bill and Rent Repayment Orders are not worth the risk of letting to any one tenant for more than 12 months
- Councils are introducing Licencing , and so many regulations that again increase risk and cost beyond what its now worth
- The only financially viable (Hybrid) Business Solution we identified , seems to have been taken off the table by HMRC Spotlight 63
- At the moment the only option we see is to sell our BTL properties , pay the CGT and walk away , but there are few buyers and the London residential market is the worst we have seen in 20 years
We think that it is fair enough for the Goverment to expect Landlords to become more professional / run a proper business like most others , but there doesn't seem to be any path for transformation (?)
