Short answer
There is no single answer to whether a limited company is better. Company ownership lets mortgage interest be deducted in full and taxes retained profit at Corporation Tax rates, but taking money out is taxed again and moving existing property into a company is normally treated as a sale at market value, which can trigger Capital Gains Tax and Stamp Duty Land Tax. We model your own figures both ways before you decide.
Figures checked against GOV.UK and HMRC guidance.
When does portfolio tax planning matter most?
- Before you buy your next property
- When rising income or interest rates push you into a higher band
- Before selling, gifting or adding a partner or child as an owner
- When you are considering moving properties into a company
Is buy-to-let better owned personally or through a company?
| Personal or joint ownership | Limited company | |
|---|---|---|
| Mortgage interest | Basic-rate tax reduction only | Deducted in full |
| Tax on profit | Income tax at your marginal rate | Corporation Tax, then personal tax on what you extract |
| Selling a property | Capital Gains Tax with an annual exempt amount | Corporation Tax on the gain, no annual exempt amount |
| Running costs | Lower | Accounts, filings and usually higher mortgage rates |
| Making Tax Digital for Income Tax | Applies above the thresholds | Does not apply |
What does incorporating an existing portfolio cost?
Transferring property you already own into a company you control is treated as a disposal at market value. That can mean:
- Capital Gains Tax on any growth in value. Incorporation relief under section 162 TCGA 1992 can defer the gain, but only where what is transferred is a business. Whether a letting portfolio is a business depends on the facts; the leading case, Ramsay v HMRC (2013), turned on the level of work the owner did.
- Incorporation relief must now be claimed. For transfers on or after 6 April 2026 the relief is no longer automatic: you claim it on your Self Assessment return for the tax year of the transfer, with details of the transaction and your computations. GOV.UK policy paper
- Stamp Duty Land Tax for the company, based on market value and including the higher rates for additional dwellings. GOV.UK SDLT rates
- Refinancing costs: new company mortgages, valuation fees and early repayment charges.
Incorporation is often promoted with schemes that promise to avoid these costs. Some rely on interpretations HMRC disputes. We will tell you plainly what is settled law, what is arguable and what we would not recommend.
What changes for landlords in April 2027?
From 6 April 2027, property income in England and Wales will be taxed at its own rates of 22% (property basic rate), 42% (property higher rate) and 47% (property additional rate), and the finance cost tax reduction rises to 22%. This increases the tax on personally held rental profits and changes some incorporation calculations. Scotland will set its own property rates. HM Treasury technical note, 26 November 2025
What we do
- A side-by-side model of personal and company ownership on your figures, over the period you expect to hold
- The one-off costs of changing structure: CGT, SDLT, refinancing
- Ownership splits between spouses or partners
- A written report with our recommendation and the risks
- Implementation with your solicitor and mortgage broker, if you go ahead
Fees
Portfolio planning is quoted as a fixed fee. We agree the scope first, because a single buy-in-a-company question costs far less than a full incorporation review. How our fees work.
Frequently asked questions
Is there a portfolio size where incorporation always makes sense?
No. The deciding factors are your tax band, your borrowing, whether you need the income, how long you will hold and the cost of the transfer, not the number of properties.
Can I put new purchases in a company and keep existing ones personally?
Yes, and many landlords do. It avoids the transfer costs on existing properties while new purchases get company treatment.
Official sources
- Change to tax rates for property, savings and dividend income: technical note (26 November 2025) HM Treasury / HMRC
- Taxation of Chargeable Gains Act 1992, section 162 legislation.gov.uk
- Capital Gains Tax: Incorporation Relief claims process (policy paper, 26 November 2025) GOV.UK
- Stamp Duty Land Tax: residential property rates (higher rates for additional dwellings) GOV.UK
- Restricting finance cost relief for individual landlords: how it's worked out, including case studies HMRC
Figures were checked against these sources on . Tax rules change: check the source or ask us before acting.