Every year the Government gives back billions to investors in pension tax relief. For example, a basic rate taxpayer can turn an £80 pension contribution into a £100 investment, and even better still, a 45% taxpayer can turn a £55 pension contribution into a £100 investment with the benefit of tax relief.

The investment growth is free of income tax and Capital Gains Tax, and there is a tax free element when you draw benefits. Your family can even inherit your unused pension without paying Inheritance Tax. No other investment grants the same tax benefits.

The antithesis of a pension investment is currently a buy-to-let investment, where the rules are designed to tax you at every turn.

Buy-to-let investments have suffered a marked slowdown in popularity as the rules have dramatically changed:

• A 3% surcharge on the current rate of stamp duty, announced in 2015, has hit anyone buying additional residential properties, including buy-to-let investors.

• The help that landlords currently receive via the tax relief they can claim on mortgage interest will also change from April 2017. At the moment they pay tax on their profits according to their income tax band. The relief will be whittled away until by 2020 it will be replaced with a 20 per cent tax credit against mortgage interest

• Also landlords can no long deduct 10 per cent of their rental profits for estimated ‘wear and tear’ – now they can only claim relief on costs they have incurred and will have to keep receipts to prove they have spent money on replacement items and repairs.

• Capital Gains Tax rates of 18% and 28% still apply to profits on buying and selling property, whereas tax rates for other assets such as shares has been reduced to 10% and 20%.

• As an extra worry, landlords will have to pay Capital Gains Tax on any profits within 30 days of selling a property from April 2019.

• Selling off properties does not come cheap – there are lots of fees and charges to consider, and it could take time. And even if you manage to find a buyer, they might not be prepared to pay the price you are looking for.

This could mean a sizeable hit in income for many buy-to-let investors.

Perhaps it is time to seek out someone speaking words of wisdom on alternative investment opportunities, including pensions.

If you are considering entering the buy-to-let market, speak to one of our specialist advisers for professional and impartial guidance on the alternative options available which could earn you a better return on your investment.

Call 01244 347583 for a free, initial consultation to discuss your options – we are available at times to suit you.

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The first bitter pill was the introduction of an increased rate of Stamp Duty Land Tax (SDLT) payable on the purchase of second properties worth more than £40,000 from April 2016.

An additional 3% will be payable on top of the standard SDLT residential rates (separate rules apply in Scotland).

Mr Osborne said the new surcharge, which will see an additional £5,520 slapped onto the average buy-to-let purchase of £184,000, would raise £1bn extra for the Treasury by 2021.

Secondly, the chancellor announced that Capital Gains Tax (CGT) payable on second homes will need to be paid within 30 days of a disposal from April 2019.

This could bring forward the payment of tax by almost 22 months for some sales.

Of course, these measures are in addition to the proposals to restrict mortgage interest relief on buy-to-let properties, which were unveiled at the Summer Budget.

So why does the chancellor have buy-to-let owners in his sights? More importantly, is buy-to-let still an attractive proposition for wealthy individuals looking for a decent return on their investment?

Regarding Mr Osborne’s thinking, aside from the boost to the Treasury’s coffers it seems he is keen to win the support of younger voters belonging to what has been dubbed Generation Rent.

“There is a growing crisis of home ownership in our country. Fifteen years ago, around 60% of people under 35 owned their own home; next year it’s set to be just half of that,” he said in his speech to the House of Commons.

As for the viability of buy-to-let as an investment, only time will tell. Some commentators are predicting a surge of investment before April 2016.

We would urge anyone considering entering the market to seek professional, impartial guidance from an independent financial advisor.

Call 01244 347583 for a free, initial consultation to discuss your options – we are available at times to suit you.

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