Short answer
A property SPV (special purpose vehicle) is a limited company set up only to hold property. It files annual accounts at Companies House and a Corporation Tax return with HMRC. Unlike individual landlords, a company deducts mortgage interest as a business cost. Profits are taxed at 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief between, and money you take out as dividends or salary is taxed again personally.
Figures checked against GOV.UK and HMRC guidance.
Who uses a property SPV?
- Investors who bought through a limited company, usually for buy-to-let lending
- Couples or families holding property through a shared company
- Landlords who have incorporated an existing portfolio
Thinking about setting one up? Start with portfolio planning and incorporation, because the answer depends on your numbers.
What is included
- Company formation advice, including a suitable SIC code for lenders (commonly 68209 or 68100)
- Bookkeeping review or full bookkeeping in Xero
- Statutory accounts filed at Companies House
- Corporation Tax computation and CT600 return
- Director’s loan account reconciliation
- Dividend paperwork and director pay planning
- Confirmation statement and company secretarial reminders
- Directors’ personal tax returns, if you want them
How is a property company taxed?
Can a limited company deduct mortgage interest?
Yes. The finance cost restriction that applies to individual landlords does not apply to companies, so interest is deducted in full as a business cost. Very large groups can be affected by separate corporate interest restriction rules.
How do I get money out of the company?
Usually as dividends, salary, or repayment of money you lent the company (a director’s loan). Dividends are taxed on you personally at dividend rates, which rose from 6 April 2026. HM Treasury technical note. Repaying a director’s loan is not taxed, which is why lending the deposit to the company, rather than buying shares with it, is common.
What does a company pay on its profits?
Corporation Tax at 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief between. The limits are shared between associated companies. GOV.UK Corporation Tax rates
Fees
Company accounts and Corporation Tax is quoted as a fixed fee. The quote reflects the number of properties in the company, its loans and whether payroll or dividends need handling too. How our fees work.
Frequently asked questions
Is a limited company always better for buy-to-let?
No. Companies pay Corporation Tax and you pay tax again to extract profits; they also bring higher mortgage rates and annual compliance costs. Companies tend to suit higher-rate taxpayers who reinvest profits rather than live on them. We model both.
Can I move my existing properties into my SPV?
You can, but it is treated as a sale at market value. That can trigger Capital Gains Tax for you and Stamp Duty Land Tax for the company. Reliefs exist only in specific circumstances.
Official sources
- Corporation Tax rates and reliefs GOV.UK
- Change to tax rates for property, savings and dividend income: technical note (26 November 2025) HM Treasury / HMRC
Figures were checked against these sources on . Tax rules change: check the source or ask us before acting.