Former Prime Minister Tony Blair is reported to have to have set up a buy-to-let property company called Harcourt Ventures Ltd.
The new company, which was incorporated last month at Companies House, looks likely to be used to help with the letting and managing (and perhaps the tax burden) of a growing portfolio of rental properties.
Tax Changes This Month
Some housing commentators have noted that the setting up of the Limited company may enable Mr Blair to pay less tax, now that the new buy-to-let tax change is coming into force this month. The Blair family already own a property investment portfolio of at least 10 houses and 27 flats which some media reports have estimated to be worth in excess of an estimated £27m.
Setting Up A Limited Company = Less Tax
The phased tax changes will essentially mean that by 2020, (mainly higher rate taxpayer) landlords will no longer be able to get tax relief by offsetting their mortgage interest payments against their rental income before making their final tax calculation. In the first phase of the tax changes this month, landlords can only offset 75 per cent of their mortgage interest.
The tax change, however, only affects landlords who hold their properties privately, rather than through limited companies. This is thought to be the reason why many landlords are setting up limited companies, and moving only the beneficial interest of the properties into them, thereby not having to re-mortgage.
A Family Affair
The new company, set up by the Blairs, is reported to have Cherie Blair is the company’s sole director, and Tony Blair as a 50 per cent holder of the shares.
The Blairs have long been known to own and manage a portfolio of buy-to-let flats in Manchester and Stockport through their existing company Oldbury Residential Ltd. Cherie and eldest son Euan (a former employee of investment bank Morgan Stanley) are believed to each have 50% of the shares in Oldbury Residential.
Tony and Cherie’s barrister daughter Kathryn is also reported to be the owner of a 
one-bedroom mews house near Marylebone, which it is believed was bought for her (for £1.2m) 2014 as a gift.
What Does This Mean For Private Landlords?
Famous names aside, this illustrates how many landlords with buy-to-let properties are acting now to mitigate the effects of the tax changes. As well as setting up limited companies, other options include moving properties into standard company structures to get the lower corporation tax rate, increasing rents, or transferring interest-only mortgages into repayment plans.
