Is buy to let still worth it?

chucknorris

caronoel wrote: »

Considering buying another one in my wife's name soon.

She is a 20% taxpayer, while i am 45%. We are considering something in one of the local university towns that is also in the catchment area of a big hospital. Gross yield is about 7%, so it's still attractive on that basis.

Can't you get your tax rate down to 40% by contributing to your pension and/or moving interest/dividend bearing assets to your wife? You could also look at VCT's although personally I don't like them, and its definitely not worth investing just for the tax relief (tail wagging the dog).

I don't get near the 45% tax band, but I manage to keep away from the 60% tax band with pension contributions and to a lesser degree my SIPP/ISA dividends and NSI interest being tax free.