Setting Up a Property Limited Company
Overview
What this guide covers
This guide explains how to set up a limited company for property investment in England. It covers the incorporation process, choosing the right company structure (SPV vs trading company), the mortgage implications, and the key tax considerations. It does not provide personal tax advice — always seek advice from a qualified property accountant before incorporating.
Who it is for
Landlords considering using a limited company structure for new property purchases, particularly higher-rate taxpayers affected by the Section 24 mortgage interest restriction.
What this guide does not cover
- –Transferring existing properties into a limited company (this triggers SDLT and potentially CGT — seek specialist advice)
- –Personal tax advice (always consult a qualified property accountant)
- –Commercial property companies
Before you start, you will need:
- ·A clear understanding of your personal tax position
- ·Advice from a qualified property accountant
- ·A decision on company structure (SPV vs trading company)
When To Use This Guide
Use this guide when:
- ✓You are a higher-rate taxpayer planning to purchase additional properties
- ✓You want to understand the limited company structure before consulting an accountant
- ✓You have decided to incorporate and need to understand the process
Do not use this guide if:
- ✗You want to transfer existing properties into a company — this is a complex transaction with significant tax implications; seek specialist advice first
- ✗You are a basic-rate taxpayer with a small portfolio — the tax benefits may not outweigh the additional costs and complexity