Jump to content
bigdreamsp

Pension contribution to extend BRT?

Recommended Posts

Hello all,

I'm looking to buy a BTL but unsure on whether I NEED to buy within limited company or not. I'm just below the HRT tax band currently but another property will put me into the HRT tax band, and therefore i have been thinking to buy within a Ltd company. However, I'm aware that making a pension contribution would extend the tax band. Therefore, if my assumption is right, surely this would be a quick and easy way of mitigating the HRT that would otherwise apply? 

I can't see this being covered anywhere so i would be most grateful if someone here with experience could enlighten us. Many thanks

Share this post


Link to post

Thanks for the response.

I guess what I'm really asking is by being pushed up into higher rate bracket would I lose the tax credit, or could a pension contribution mitigate this?

Share this post


Link to post
On 2/13/2020 at 9:00 PM, bigdreamsp said:

Thanks for the response.

I guess what I'm really asking is by being pushed up into higher rate bracket would I lose the tax credit, or could a pension contribution mitigate this?

Hi bigdreamsp,

Yes I've made a contribution to my work pension in the past when I realised my rental income would push my total income into the higher tax bracket.

Olly

Share this post


Link to post

Hi Bigdreamsp,

Going forward though, I'd rather invest any spare capital into further BTLs rather than in my pension as I feel the BTLs will give me more control and possibly a better 'pension'.  I'm looking to set up a SPV to move one of the properties into and for further investments.

Olly

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×