Horizons Investment International

Becoming a property investor has its own set of unique challenges, but none more so than that of the tax landscape. Tax is one of the biggest headaches for a property investor with any size of portfolio, but it is vital that it is understood fully. With recent changes to taxes, any landlord who felt that they had a grip on things has been forced to go back to the drawing board. Understanding the taxes that might affect you will help you to forecast the profits you can expect to realise, what investment you should make and the best way to go about it. Recent Tax Changes In 2017, the Government announced a raft of changes that hit property investors hardest of all. It meant that most had to reconsider how their investments would work, and provided a new list of challenges for anyone wanting to enter the buy-to-let market. One of the most significant changes that was brought in during April 2017 restricted the tax deductibility of mortgage interest. This has meant that inves...

Mortgage Tax Relief Changes for Landlords If you are a landlord, you should already be aware of the changes that the government has made to the rules regarding mortgage tax relief. These changes are now being phased in and property investors are getting ready to feel the pinch. With the first round of tax bills affected by new Government regulations about to be submitted, investors are waiting anxiously to see what profits can still be made from property and how best to achieve this. Fears have been rife that the property investor is being pushed out of the market as the Government tries to encourage more first time buyers, but landlords still play a vital role in the property landscape which means there is still room for profitable investments. Mortgage Interest Tax Relief In the past, investors in property have been able to benefit from a scheme that allowed them to deduct all of the interest paid on their mortgage before calculating their tax bill. In some cases, this ...

When it comes to deciding where to invest your money, bricks and mortar is still a popular choice. However, it is not a simple process, as there are many taxes that will impact on your purchase and your profits. So what are they and how will they affect you? Property can provide a regular income for many, complete with the promise of a capital growth profit when the time comes to sell up. Whilst the tax changes that have taken place over the last 12 months have undoubtedly affected what can be earned, this does not mean that there is no money to be made in property. CAPITAL GAINS TAX Capital Gains Tax is applied to the profit you make when you sell and asset that has increased in value. It is the gain that is taxed, not the entire value so you need to ensure that profits forecasts take this into account. The first £11,300 of profit that you receive is free, so it is the subsequent amount that is taxable. The tax that is paid will depend on whether you are a basic rate or ...

Thanks to the recent changes in tax laws, many property investors are now investigating whether buying property through a limited company is a more viable financial option than purchasing it privately. The removal of the mortgage interest relief has left many private landlords with much smaller profit margins. As the laws are different for properties purchased through a limited company, many now feel that setting up their own company with which to buy the property would be a better path to take. As with any type of investment, there are pros and cons in setting up a limited company, and it is important that you understand what it means for you. A limited company is considered to be incorporated, which means it has its own legal identity, allowing it to own assets and sue in its own right. This means that the owners of such a company are not personally liable for any debts. THE BENEFITS OF A PROPERTY INVESTMENT LIMITED COMPANY Purchasing a property as a limited company...