Every landlord's position is different. Answer a few quick questions and we'll tell you, in plain English, whether moving your buy-to-let into a company actually makes sense for you.
"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, the rent is added to your other income and taxed at your personal income tax rates — 20%, 40% or 45%. Crucially, since Section 24 came fully into force, you can no longer deduct your mortgage interest from your rental profit. Instead you only get a 20% basic-rate tax reduction on it.