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Pension contribution to extend BRT?


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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

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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

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