National Protection Sales Manager Bernie Buron highlights the potential business protection gap that might arise from the upcoming tax changes.
The UK government has announced that as of April 2017 the tax relief landlords were enjoying on their mortgage payments would be phased out over the following years. With the stamp duty changes also coming into effect in April 2016, there has been an expected increase in limited company applications in the buy-to-let sector, as many are looking at their current situation and deciding that applying for mortgages as a business is a preferable option.
This has opened up a world of opportunity for advisers as their landlord clients find themselves facing a different set of business protection needs that can not only protect them and their employees from financial detriment, but make their portfolio as tax efficient as possible.
Limited companies receive tax relief on premiums that they pay for business protection. With your advice, they can ensure their move to a limited company set-up can benefit them whilst ensuring a stable and secure financial future for themselves and their employers.
Although there are different types of business protection, there is one main area that is likely to be pertinent to your landlord clients:
A tax efficient death in service contract paid to the employer but written under trust for the beneficiaries of the plan.
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