Now that winter is behind us, and spring is in the air, the housing market is once again beginning to bloom into life. For those looking to start, or expand, their property portfolios (and estate agents), this can be a busy time of year.

Property has historically been a popular investment choice, as it can mean low risk returns and provide income from both the date of purchase, and the potential for strong capital returns on sales in the future. Recent changes to the rules on tax relief for loan interest and the LBTT charges for second residential properties has had little impact on the popularity of investing in property, but careful consideration should be given as to how you own your investment property, as there are a number of different structures that can be used.

The most beneficial way for you to own rental property will depend on your own individual circumstances, which could change over time.

If you are looking at joining the rental market as a landlord, or if you are already on the way to building your property empire, below are some of the considerations to make:

Ownership

  • Should you own it yourself or jointly with someone else, to share the tax burden?
  • Should you own the property personally or should you consider starting a limited company? Would the costs outweigh the benefits?
  • Do you need finance to purchase the property?
  • Do you have future plans for the property (maybe a pension, or inheritance for your family) or would you be looking to sell in the nearer future?

Property type

  • A residential let, for longer term, more passive, rental income?
  • A commercial let?
  • A holiday let/AirBnB property?

A spare room

  • Would you consider the Rent a Room scheme?

Personal use of the property

  • This could impact the tax treatment of the rental income and expenses
  • If owned via a company, personal use could result in tax costs

There can be quite a lot to think about, but don’t worry – we are here to help. For an informal chat, contact your usual Campbell Dallas advisor or call us on 0131 440 5000.