According to a leading accountancy firm, landlords should take maximum advantage of the Stamp Duty holiday by their changing their existing portfolio into a limited company.

Matt Warwick, tax senior at the accountancy firm, said: “Although landlords buying additional properties still face a 3% SDLT surcharge on their property purchases, they are not required to pay the standard rate of SDLT on top for homes valued £500,000 or less.

“This also applies to the transfer of properties into a business, which would normally attract a substantial SDLT bill. In fact, the savings could mean they pay up to half as much.”

He also advises landlords that having a limited company structure allows landlords to take advantage of mortgage interest tax relief on BTL properties, whereas ‘single’ landlords are unable to do this.

Ever since April 2017, mortgage interest tax relief for landlords has been reduced in phases, and from April 2020 individual landlords are no longer able to deduct any of their mortgage expenses from their rental income to declare against property profits.

Any financial costs that landlords incur will only be allowed at a basic tax reduction of 25%; but limited companies’ properties are considered to be a business and therefore most expenses can be deducted for tax purposes.

Warwick added: “Before the SDLT holiday there had been a lot of debate about whether incorporation is the right approach to take and whether it saves sufficient money to merit the switch,” he added.

“Now, though, it is clear to see that there is a chance for landlords to take advantage of the higher allowance and lower property prices to expand their property empires.”

“Of course, each person’s situation is different, but with a potential saving of £15,000 in stamp duty per property there surely isn’t a better time to re-evaluate your position and consider incorporation. With only six months or less of relief available, investors must act soon.”

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