"Should I put my buy-to-let in a limited company?" is the question we hear most from landlords. It became far more common after Section 24 changed how mortgage interest is taxed, and again every time mortgage rates move. The honest answer is: it depends. For some landlords a company saves thousands of pounds a year; for others it adds cost and complication with no real benefit.
This guide gives you a clear, jargon-free way to work out which camp you are in. We will look at how personal and company ownership differ, who usually benefits, who usually shouldn't bother, the costs people forget about, and the one-off tax bill of moving existing property across. By the end you should know whether it is worth getting proper advice on your own numbers.
When you own a rental property in your own name, its profit is added to your other income. For 2026/27, the usual income-tax rates in England, Wales and Northern Ireland are 20%, 40% and 45% (Scottish income-tax treatment differs). Crucially, Section 24 restricts relief for qualifying residential finance costs: instead of deducting the interest in arriving at taxable rental profit, you generally receive a 20% tax reduction, subject to the statutory cap rules.
When a limited company owns the property, the rent is the company's income. Corporation tax is 19% at the small-profits rate and 25% at the main rate, with marginal relief between the thresholds; the applicable thresholds can be reduced by associated companies and the calculation depends on the company's circumstances. A company is not caught by Section 24, so qualifying finance costs are normally deductible in calculating its taxable profit.