Free tool for UK landlords
One of the first decisions for a buy to let, and one of the easiest to get wrong. Answer a few questions and this tool shows which way the decision leans for you, and why. It also covers the separate question of moving a property you already own into a company. It is a guide to help you have a sharper conversation with an accountant and broker, not advice in itself.
Last reviewed June 2026. Tax bands and rates can change, so check the current figures before deciding. Information only, not advice. This tool weighs up general factors to show which way the decision tends to lean. It does not know your full circumstances and is not tax, legal or financial advice. The tax treatment of property depends on your situation and the current rules, and BTL Insight is not a tax adviser. Confirm anything that matters with a qualified accountant and a mortgage adviser before you act.
There is no single right answer. It comes down to your tax position, how many properties you plan to hold, whether you need the rent as income now or will reinvest it, and your longer term plan.
As a broad pattern, higher and additional rate taxpayers, people building a portfolio, and those reinvesting profit tend to lean towards a company, while basic rate taxpayers with one or two properties who want the income directly often prefer their personal name. The tool above weighs your own answers. It is general information, not tax advice, so confirm the figures with an accountant.
An SPV, or special purpose vehicle, is a limited company set up only to hold and let property rather than to trade in anything else. Most lenders that work with company landlords prefer or require one, set up under a standard property SIC code such as 68100 or 68209, because it keeps the company simple to understand.
You can set one up at Companies House for a small fee, often in one sitting. The gov.uk guide to setting up a limited company has the official steps.
Usually the rate is a little higher than the equivalent personal buy to let, but the gap has narrowed a lot and company buy to let mortgages are now widely available. Lenders generally want the company to be an SPV and ask the directors for a personal guarantee, and the deposit is broadly similar, with 75% loan to value products common either way.
Because rates move, it is worth checking the current position rather than assuming. Our buy to let rates page shows indicative figures by lender tier, and the mortgage comparison tool works out the monthly cost.
Not for the mortgage. Limited liability protects your personal assets from most company debts, but lenders generally require the directors to sign a personal guarantee on a company buy to let mortgage. If the company cannot keep up the payments and selling the property does not clear the debt, the lender can usually pursue you personally for the shortfall.
So a company changes how the property is owned and taxed, but it does not hand the mortgage back as a no responsibility arrangement. It is worth going in expecting to stand behind the borrowing yourself.
In most cases, yes. Being a first time landlord, or even a first time buyer, does not by itself rule out a company buy to let mortgage, and it does not really change the personal versus company decision.
The choice of lenders can be a little narrower, so it is worth checking what is available for your situation, but it is rarely a blocker on its own.
Moving a property you already own into a company is not a simple transfer. It counts as a sale from you to the company at market value, so it can trigger capital gains tax and stamp duty now, on top of refinancing onto a company mortgage.
For that reason it tends to make sense mainly for higher rate taxpayers, or those moving several properties, where the ongoing saving can outweigh a real upfront cost. Use the moving in path in the tool above to see what to weigh, then model it with an accountant.
The main costs are capital gains tax on any increase in value since you bought it, stamp duty for the company buying at market value including the additional property surcharge, redeeming your current mortgage and arranging a company one, any early repayment charge on your existing deal, and legal fees.
Because you are in effect selling to yourself, you usually need two solicitors, one acting for you and one for the company, plus the ongoing running costs of a company. Our stamp duty calculator and capital gains tax calculator can size up two of those costs.
These can reduce the tax when an existing property business is moved into a company. Incorporation relief can defer the capital gains tax where a genuine business is transferred in exchange for shares, and SDLT partnership relief can reduce the stamp duty where a genuine property partnership incorporates.
Both depend on running a real property business rather than holding a passive investment, with conditions around activity and how the shares are held. HMRC looks at these closely, so they are not automatic. This is signposting, not tax advice; see gov.uk on incorporation relief and speak to a qualified adviser.
No. The Section 24 restriction, which limits personal landlords to a basic rate tax credit on mortgage interest rather than a full deduction, applies to individuals, not companies. A company can deduct its mortgage interest in full as a business expense before corporation tax.
This is the main reason a company can be more efficient for geared, higher rate landlords. How tax applies depends on your circumstances, so check the current rules on gov.uk or with a tax adviser.
The company pays corporation tax on its rental profit, at a small profits rate for lower profits rising to the main rate for larger ones, with mortgage interest deducted in full first. If you then take the profit out personally, usually as dividends, that is taxed again at dividend rates, which is the double taxation people refer to.
If you leave profit in the company to reinvest, you avoid that second layer for now. Tax depends on your own position and the current rates, so this is general information rather than advice. Confirm it with an accountant.
Yes. A limited company appears on the Companies House register, including the directors and the people with significant control, and it files accounts each year, much of which is public.
For some people that is a fair trade for the other benefits; for others the extra admin and the public record are reasons to prefer personal ownership. It is worth weighing alongside the tax and mortgage points rather than in isolation.