Rental income form personally held buy to let is taxed at the owner’s tax rate (up to 45%).
On acquisition, landlord pays Stamp Duty Land Tax (SDLT) which from April 2016 a 3% charge above the current rates apply.
On disposal from 5 April 2015 whether the landlord is UK resident or not disposal of interest in UK residential property is subject to Capital Gains Tax (CGT).
If you decide to incorporate then you would trigger a capital disposal and CGT will be payable at either 18% or 28% or a combination of the two depending on your level of income.
With Inheritance Tax (IHT) BPR is not likely to apply in respect of buy to let as its considered an investment, beneficiaries would receive the property at market value and with immediate sale no CGT will be payable.
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