Limited company buy-to-let.
Company or personal? Here's the honest version, including when the answer means we can't help you.
This page discusses tax, so one thing up front: we are not tax advisers. We're brokers. We explain how limited company buy-to-let works and we arrange the finance once you've decided. Whether a company is right for your numbers is a question for an accountant, and we'll say so more than once below, because it matters.
Company or personal?
Almost nobody searching this has decided yet. They're weighing it up. So before anything else:
There is no universal answer. Anyone telling you "always use a company" is selling you a company. Anyone saying "never bother" hasn't run the numbers on a higher-rate taxpayer with four properties.
It turns on your marginal tax rate, how many properties you hold, whether you need the rental income now or can leave it in the business, and whether you're buying or transferring.
- You're a higher or additional-rate taxpayer
- You're building a portfolio
- You don't need the income immediately
- You're buying new, rather than moving existing property in
- You're a basic-rate taxpayer
- You have one or two properties
- You need the rental income to live on
- You already own it personally and moving it costs more than it saves
We'll be straight about our position: we arrange finance for limited companies and SPVs only. We don't deal with individuals. So if the answer for you is personal ownership, we can't help you, and we'd rather say that on this page than after a phone call.
That also means we've no incentive to talk you into a structure that doesn't suit you. We only have one product. If it's not yours, it's not yours.
Section 24.
Ten years ago almost nobody asked it. Then the tax rules changed.
Before, an individual landlord deducted mortgage interest from rental income and paid tax on the profit. Sensible, and how every other business works.
Section 24 phased that out for individuals. Now an individual landlord pays tax on rental income before mortgage interest, then receives a basic-rate tax credit against the interest. For a higher-rate taxpayer with a substantial mortgage, that's a materially different bill, and in some cases tax due on a property making an actual loss.
Section 24 doesn't apply to companies. A company still deducts mortgage interest as a business expense, because a company is a business.
That single asymmetry created the limited company BTL market. Every lender product, every SPV, every page like this one exists because of it.
This is mechanics, not advice. Your numbers depend on your circumstances and the rules change. Talk to an accountant who does property; firms like Provestor specialise in exactly this and will model your position properly. We're brokers; we arrange the finance once you've decided.
What changes when a company owns the property.
- Mortgage interest is deductible again. The Section 24 restriction doesn't apply. Interest comes off before tax.
- You pay corporation tax, not income tax. On profits, at company rates rather than your marginal rate.
- Getting money out is a second step. This is the bit people miss. Profit sits in the company. Taking it personally means a salary or a dividend, and that's taxed again. A company is efficient at holding and reinvesting, less efficient at paying you today. If you need the rent to live on, that second tax layer can erase the first advantage.
- Mortgage rates are usually higher. Limited company BTL products typically price above personal equivalents, and fees are often higher. The tax saving has to clear that gap. Company buy-to-let rates →
- Fewer lenders, but not few. The company BTL market is smaller than the personal one and it's grown a great deal. Most specialist lenders are comfortable with it.
- More admin. Accounts, confirmation statements, corporation tax returns. An accountant's fee every year, forever.
- Lenders will want personal guarantees. The company owns the property; you guarantee the debt. Limited liability is thinner here than the phrase suggests.
When personal ownership is still better.
Nobody else on this page's search results writes this section, because everyone else can sell you either. We can't, so we can afford to.
- You're a basic-rate taxpayer. Section 24's bite depends on your marginal rate. At basic rate, much of the advantage evaporates.
- You need the rental income now. Extracting profit means dividend or salary tax on top of corporation tax. If the rent pays your bills, a company can leave you worse off.
- One or two properties. The running costs, accountant, filings, higher rates and fees, are a fixed drag. Across a small portfolio they may exceed the saving.
- You already own it personally. Transferring is usually expensive. See below.
- You're planning to live in it. Technically possible. Practically a bad idea: it's a benefit in kind, taxed accordingly, and it invites scrutiny of the whole structure. This isn't a loophole. Don't.
If any of these is you: buy it personally, and we're not your broker. That's not us being unhelpful, it's the honest answer, and there are excellent brokers who serve individual landlords. We don't.
Transferring property you already own.
The most expensive mistake in this whole area.
Moving a property you own personally into your own company is not an internal reshuffle. In law it's a sale from you to a separate legal person. Which means:
- Stamp duty land tax. Payable by the company on market value, at the higher rates for additional property. On a £300,000 property that's a substantial five-figure sum.
- Capital gains tax. You've disposed of an asset at market value. If it's gone up since you bought it, that gain is taxable now.
- Early repayment charges. Your existing mortgage is redeemed, not transferred.
- New mortgage, new fees, new legals.
People search for a way to transfer property to a limited company without stamp duty hoping there's a route. There are reliefs in specific circumstances, incorporation relief where a genuine property business is transferred, and partnership routes, but they're fact-specific, they don't apply to most single-property landlords, and getting them wrong is expensive.
This is exactly where you need an accountant, not a broker and not a website. We arrange the finance if you go ahead. We can't tell you whether you should, and any page that tells you confidently either way isn't looking at your numbers.
Setting up an SPV.
Most lenders want a special purpose vehicle, a limited company that does one thing: hold property.
Not your trading company. A clean, purpose-formed company, usually with the right SIC codes, no other activity, no other liabilities.
The full explainer, why lenders insist, which SIC codes, how many properties per SPV, what happens with multiple companies, is here:
Company and SPV lending, across the range.
- Limited company and SPV buy-to-let. Purchase and remortgage.
- HMO mortgages. Houses in multiple occupation, held through a company. Our biggest single specialism on this side.
- Portfolio landlord facilities. Four or more mortgaged properties.
- Sharia-compliant buy-to-let. Ijara and Murabaha structures through a company.
- Multi-unit freehold blocks. One freehold, several units, one facility.
- Holiday let and serviced accommodation. Through a company.
We work with limited companies, SPVs and corporate borrowers only. Not individuals. Not sole traders. Want to model the numbers first? Try the calculator →
A company, an SPV, and a straight answer.
- Call0333 577 1988
- Emailinfo@huntergrey.co.uk
- Office139-143 Union St, Oldham, Greater Manchester, OL1 1TE
We are not tax advisers. For the tax question, speak to an accountant who does property before you commit.
Limited company buy-to-let, answered.
Should I buy to let through a limited company or personally?
It depends on your marginal tax rate, portfolio size, and whether you need the rental income now. A company tends to suit higher-rate taxpayers building a portfolio who can leave profits in the business. Personal ownership tends to suit basic-rate taxpayers with one or two properties who need the income. Get an accountant to model your actual numbers; we're brokers, not tax advisers.
What are the pros and cons of limited company buy-to-let?
Pros: mortgage interest is fully deductible (Section 24 doesn't apply to companies), corporation tax rather than income tax, easier to retain and reinvest profit. Cons: higher mortgage rates and fees, a second layer of tax when extracting profit, annual accounts and filings, and lenders will want personal guarantees.
Why do landlords use limited companies?
Because Section 24 removed mortgage interest relief for individuals but not for companies. For a higher-rate taxpayer with a substantial mortgage, that difference can be material.
Can a limited company buy a buy-to-let property?
Yes. It's standard, and there's an established lender market for it. Most lenders want a special purpose vehicle rather than a trading company.
Do I need an SPV or can I use my trading company?
Most lenders want an SPV, a company that only holds property. Some will lend to a trading company but the choice narrows sharply and pricing usually worsens. SPV mortgages →
How do I transfer my buy-to-let to a limited company?
It's a sale from you to the company at market value, which usually triggers stamp duty at higher rates and capital gains tax, plus early repayment charges and new mortgage costs. Reliefs exist in specific circumstances but they're fact-specific. Get an accountant to run it before you do anything.
Can I transfer property to a limited company without stamp duty?
Only in specific circumstances, such as incorporation relief where a genuine property business transfers, or certain partnership routes. These don't apply to most landlords and getting them wrong is expensive. This is an accountant's question.
Are limited company buy-to-let mortgage rates higher?
Usually, yes. Company products typically price above personal equivalents, and arrangement fees are often higher. The tax saving needs to clear that gap. Company buy-to-let rates →
Can my company buy a house and rent it to me?
Technically possible; practically a bad idea. It's a benefit in kind, taxed as such, and it invites scrutiny of the whole arrangement. Don't structure around it.
Do you work with individual landlords?
No. We arrange finance for limited companies, SPVs and corporate borrowers only. If personal ownership is right for you, you'll need a broker who serves individuals; there are good ones.