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Foundation research reveals tax specialist opportunity

The increasing use of limited companies by portfolio landlords is opening up the opportunity for mortgage advisers to develop relationships with tax specialists, according to research from Foundation Home Loans.

Figures collected by the lender show that 62 per cent of portfolio landlords use a tax adviser, while 54 per cent of all landlords use the service.

According to Foundation director of marketing Jeff Knight, this is, “clearly an opportunity… for advisers to forge introducer relationships with tax specialists to ensure their clients have the right advice before making their next buy-to-let move.”

He adds that while portfolio landlords are more likely to use a tax adviser than not, “there is still a sizeable number who would no doubt benefit from such services, and it would ensure that a mortgage adviser is not perceived to be giving tax advice when providing their client with a mortgage recommendation – a potential risk for advisers which has been highlighted in recent years.”

Further data shows that over half of all landlords intend to purchase their next BTL property through a limited company, which rises to 71 per cent for landlords who have over 11 properties.

Knight concludes: “There is no doubting that the major growth area of BTL is the use of limited company vehicles, particularly for purchases but also increasingly for remortgaging.

“More and more landlords are adding to their portfolios through a limited company in order to ensure they can secure the full tax relief on their mortgage payments which has been cut for properties held in an individual’s name.”

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