As we approach April 6th – the date on which landlord tax relief changes will come into play – landlords are understandably feeling nervous. Even those who have already made plans to deal with the cuts – which will have significant impact on some landlords’ profits – are worried about their impact on the market.
But it’s not just landlords who appear to be worried about April, brokers are too – and not for the reason you might think. While brokers will undoubtedly be concerned that the tax shake up will force some landlords to sell up and leave the sector – taking their valuable business with them – there is a bigger concern for many advisers. Many are concerned that they may find themselves in hot water when dealing with landlord clients going forward.
Landlords will clearly want advice on taxes going forward. It’s not going to be possible to be involved in buy-to-let going forward without considering the tax implications. And brokers are concerned that in doing this they’ll be veering too close to the tax advice area. And rightly so.
There’s also a danger, of course, of advising on mortgage products where borrowers have not fully explored the tax implications of their actions.
How can you ensure you take all tax considerations into account in order to ensure the product you are suggesting is the right fit without becoming embroiled in giving tax advice?
The answer is be developing partnerships. Brokers should be developing good partnerships with firms that will be able to attend to their clients tax needs just as they would when dealing with their clients’ protection or life insurance requirements.
Go the extra mile for your client by introducing them to someone who can help rather than attempting to advise on areas you have no business getting involved with – and protect your client and yourself in the process.
Read more at http://www.financialreporter.co.uk/mortgages/tackling-the-buy-to-let-landscape-going-forward.html
Property & Development Magazine
