Ms Whitehead stressed the need for advisers to be “very clear” about the nature of advice they gave to a client when drawing up the paperwork and financial report in order to protect themselves against compensation claims.
“We won’t do anything like that without the accountant confirming in writing from a tax adviser point of view they are advising that the client and business should do this. We want that in writing,” she explained.
Robert Sinclair, chief executive at the Association of Mortgage Intermediaries, said: “We have been giving clear guidance to our membership for months now that any decision that any customer may make to acquire buy-to-let has to be advice given by the accountant and/or tax adviser
“Some lenders lend on a limited company basis at the same rate and some charge a premium, so then you get into a debate.
“If an adviser made a recommendation and you did not send them for appropriate tax advice, then you would be at risk.”