Pensioners face heavy taxation on BTL investment

With the new pension annuity reforms coming into place in April 2015 many pensioners are considering dragging out a big chunk of their pension annuity to invest in BTL property.

Be warned, the tax implications might out weigh the returns. Overtime, five different forms of taxation will potentially be applied to the property investment.

• Income tax when the amount is withdrawn.
• Stamp duty on buying the BTL property. 
• Income tax on the rents paid. 
• Capital gains tax if sold. 
• Inheritance tax on the asset.

Read the article on tax implication of withdrawing cash from annuity to invest in BTL property

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