7 August, 2024
Episode 21 – The Ongoing Effects of Section 24 (with Simon Misiewicz of Optimise Accountants)
Ruban Selvanayagam of cash home buyers and auctioneers Property Solvers speaks with Simon Misiewicz of Optimise Accountants on the continued effects of Section 24 of the Finance Act 2015 (which limits mortgage interest relief for buy-to-let landlords).
They discuss the exposure to greater tax liabilities (especially for higher-rate taxpayers), how basic rate taxpayers could still be pushed into a higher tax bracket due to increased rental income, the likelihood of a reversal of the legislation as well as the contiguous challenges landlords are facing (including rising mortgage rates and the difficulty of remortgaging), which has led some to sell properties or incorporate them into limited companies to mitigate tax burdens.
Simon goes on to run through potential strategies, including investing through Limited Companies / Special Purpose Vehicle (SPV) structures and strategically selling less profitable properties. Simon also warns about the risks and uncertainties associated with incorporation relief, emphasising the importance of thorough financial planning and consultation with accountants. The conversation concludes with advice on the importance of regularly reviewing property portfolios and making informed decisions to navigate the evolving landlord tax landscape.
Links (Resources) Referred to in the Podcast
Section 24 (Finance Act 2015) Legislation
Property Solvers’ Post on Section 24
