Jamie Smith-Thompson, managing director of advice firm Portafina, comments: “The changes in tax legislation are going to deter more amateur clients from becoming landlords, as they are likely to be heavily taxed on the increased income.
“Putting additional structures in place to mitigate this adds unwanted complication and processes if you are doing it on a small scale”
Ms Sedgwick adds: “As these changes are being phased in over the next four years, the new ‘norm’ has not been established.
“Intermediaries must ensure before embarking on any buy-to-let mortgage applications, their landlord clients have taken professional, qualified tax advice – and they must, must, must make sure they document this fully.”
“IFAs are not primarily tax experts”, agrees Mr Smith-Thompson, adding: “This may call for partnering with an accountant to ensure the tax scenario is covered thoroughly.”
simoney.kyriakou@ft.com
