Warning of 33% tax trap in using pensions for BTL

"Also, buy-to-let investments are subject to inheritance tax on death, so this could be up to 40 per cent of the value."

Mr Chan also said there were other concerns with property such as the fact it was considered an illiquid asset.

He added: "Property is an 'illiquid' investment so capital is tied up, there could be vacant periods when the property is not let out or in the unfortunate event that of bad tenants, it takes a couple of a months to evict them.

"Choosing to become a landlord isn’t a decision to be taken lightly and my view is that most retail clients should not be relying on buy to let investments as a sole source of retirement income, as similar or better returns could be achieved with pensions or Isas without the hassle, tax implications or practical issues."

What do you think about the issues raised by this story? Email us on to let us know