Personal vs Limited Company Ownership
Overview
What this guide covers
This guide compares personal and limited company ownership of rental properties in England. It covers the key tax differences (income tax vs corporation tax, Section 24, dividend tax), the additional costs of a company structure, and how to think about the break-even analysis. It does not provide personal tax advice — always consult a qualified property accountant.
Who it is for
Landlords in England deciding whether to hold properties personally or through a limited company, and those reviewing their existing structure.
What this guide does not cover
- –The mechanics of incorporating a company (see the Setting Up a Property Limited Company guide)
- –Transferring existing properties into a company (seek specialist advice — SDLT and CGT implications)
- –Personal tax advice (always consult a qualified property accountant)
Before you start, you will need:
- ·Your current income tax rate (basic, higher, or additional rate)
- ·Your mortgage interest costs
- ·The number of properties you own or plan to own
- ·Your long-term plans (hold, sell, pass on)
When To Use This Guide
Use this guide when:
- ✓You are deciding how to hold your first or next rental property
- ✓You are a higher-rate taxpayer affected by Section 24
- ✓You are reviewing your existing portfolio structure
- ✓You want to understand the key differences before consulting an accountant
Do not use this guide if:
- ✗You want a definitive answer on your personal tax position — this guide provides a framework, not personal advice