BTL2021: Tax adviser referrals gave brokers £5m+ portfolios to incorporate – Paragon

BTL2021: Tax adviser referrals gave brokers £5m+ portfolios to incorporate – Paragon

 

Speaking during the event, Paragon national sales manager Jason Wilde (pictured) revealed the lender had dealt with several multi-million pound cases from brokers originated through tax specialists.

“There has never been a better time for intermediaries to forge working relationships with accountants and tax specialists,” he said.

“We’ve had a number of £5m+ portfolios and incorporations which have been introduced to brokers by accountants and tax advisers.”

Wilde noted that with the eradication of mortgage interest relief for landlords this had caused another wave of landlords to consider their tax position and potentially incorporate their portfolios.

“With section 24 being fully implemented this year there will be a number of landlords facing yet another increase in their taxable incomes. This has driven a demand in limited company borrowing,” he added.

Aldermore national sales manager Matt McCullough agreed, noting that he thought the rate of incorporating will increase over the next 12 months, as the pre-tax changes peak of five-year fixed rate deals in 2016 would be starting to mature.

“So this will be a big time for it,” he said.

 

Four keys to limited company buy to let

And McCullough emphasised the importance of clients getting tax advice first, then going to the intermediary for mortgage advice before bringing them together. He concluded his presentation with the four key points for undertaking limited company BTL. They were: