Sipps to grow buy-to-let by 15% - UCB Home Loans

A report by UCB Home Loans, finds this increase could see as much as a £5bn spent by individuals wanting to put a property within their personal pension over the next year, adding mortgages will account for around a third of this figure. The firm points out the potential benefits post 6 April 2006, whereby a property can be purchased and set against income tax, meaning a 40% taxpayer will only pay £120,000 for a £200,000 property. Taxpayers at the lower rate of 22% will pay £156,000. Moreover, if a property is let out, the rental income remains free of income tax and, when the propert...