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owning just one BTL ,is there advantage to starting a small property business


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I intend to just buy One BTL  and keep for say 15 years plus as my sole income.

Would starting a small business as a landlord be permitted and would it be an advantage for income tax

or capital gains tax relief if i sold the property some years later ?

If so is it free to start a business ? sorry lots of questions.  Regards Alan

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There is no particular advantage with one property. Here are some considerations, there are many others :-

* It will cost you to set up a Limited Company.

* Ltd Co' mortgages have a slightly higher interest rate.

* The Company will pay corporation tax instead of income tax.

* You will still pay income tax on anything you take above the nil rate allowance.

* Corporation tax rates are more prone to political changes.

* The decision to go Ltd depends on your individual circumstances.....best to get professional advice.

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I would also say having just one property as your sole income leaves you at risk of reduced or no income during void periods, large maintenance expenses or problems with non payment of rent.

Having 2 or ideally 3 (smaller) properties could mitigate the risk. 

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I've been looking at 3 bed terrace houses in the region of 250/260k generating about £1100 pcm but another option is the same type of houses already split into 2 flats generating £650+ X2 pcm. A number of pro and cons for this but it is another angle to consider. 

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