Kent Reliance’s Buy To Let Britain report found that just under 38,000 loans were issued to limited companies in Q1.
Limited company buy-to-let lending was four times higher in the first quarter of 2016 compared to the corresponding period in 2015.
Kent Reliance’s Buy To Let Britain report found that just under 38,000 loans were issued to limited companies in Q1.
Buying through a limited company enables landlords to be taxed on lower corporation rates and avoid the government crackdown on buy-to-let tax relief for higher rate taxpayers, which will see the amount of mortgage tax relief landlords can claim back cut from 45% in 2017 to 20% in 2020.
Andy Golding, chief executive of OneSavings Bank, parent of Kent Reliance, said: “The popularity of limited companies is soaring as investors seek to reduce tax exposure.”
Kent Reliance expects limited company loans to total 98,400 in 2016, nearly 40% of the total number of buy-to-let loans and nearly three times its share of the market in 2014.
