Roy Maugham, tax partner at UHY Hacker Young, said that if a buy-to-let home which has been purchased has “qualified as a furnished, holiday let” for more than two years, the property could be labelled a business asset.
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This would mean that a buy-to-let investor’s capital gains tax could fall to ten per cent and that they could alleviate costs even further by moving into the property and establishing it as their principle private residence.
When speaking of ways for landlords to reduce their bills, Mr Maugham added: “They can reinvest the proceeds in venture capital trusts and get tax relief that way.
“There are some film schemes still around – they can invest the money in those sorts of things and get tax relief.”
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UHY Hacker Young Group is a leading chartered accountant with 19 offices based in the UK. It offers advice and guidance on commercial matters as well as personal financial situations and problems.
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