Do you think of your Buy To Lets as a hobby or a profit making business?
Posted on 18th August 2020 at 16:29
What is a ‘business’?
A person or company who offers either a product or service in exchange for a profitable return (a ‘yield’) ?
And with the aspiration for capital growth too?
…. That sounds remarkably like a BTL!
But of course when there are BTL mortgages in place, so the profit is reduced, tax is possibly payable on the income (income tax if held in a personal name, corporation tax if in a Ltd Coy name), there are also potential CGT bills when properties are sold, and also the regulatory aspect of safety checks, certificates, licences, deposit holding, property management and the myriad of other responsibilities are required too.
So if this is a business, why do you buy traditional, personal life insurance to repay the debts?
Firstly, yes, every BTL mortgage is a debt and therefore should be properly protected … that’s just sensible and sound financial planning to ensure those left behind don’t have added grief and financial distress, too.
The question is; instead of “traditional, personal life insurance”, why not implement Business Cover (for your BTL ‘Business’)?
Did you know that with the right Business Cover arrangement, your net cost can be much reduced by setting it all up in a tax efficient way, beneficiaries can be formally nominated, and we can speak with your accountant to make sure it’s all correctly arranged for you too.
You have Buy To Let’s, you have a business, but you either have the wrong (or no) protection in place.
Call us now for a no cost appraisal and a range of quotes and options, or email your situation to us at SupportDesk@hdconsultants.net and see how we might be able to help you via our Team of qualified, experienced, authorised and independent experts.
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