Q&A: incorporation of a letting business for tax relief purposes

Croner Taxwise tax adviser Sohail Butt FCCA considers the use of Chargeable Gains relief to claim relief on a rental portfolio by incorporating the business

Question: A client has a rental portfolio of 8 properties and wishes to claim incorporation relief under section 162 Taxation of Chargeable Gains Act 1992 (TCGA 1992).

Answer: Many clients who have a portfolio of rental properties are becoming increasingly aware of the changes to income tax relief in respect of mortgage interest relief. They wish to incorporate the property business and if possible take advantage of incorporation relief.

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