Landlord outside a rental property with a letting board
Section 24 of the Finance Act 2015 restricts mortgage interest relief for individual landlords to the basic rate of income tax. Limited companies pay corporation tax on profits and can deduct mortgage interest in full.

Personal Ownership vs Limited Company — Which Is Right for You?

growing-your-portfolio·Updated 2026-06-01·England

Personal Ownership vs Limited Company — Which Is Right for You?

Overview

What this guide covers

How to compare personal and limited company ownership structures for buy-to-let — covering tax treatment under Section 24, mortgage availability, extraction strategies, costs of incorporation and when each structure makes sense.

Who it is for

Landlords with one or more properties who want to understand whether a limited company structure would improve their tax position, and portfolio landlords considering restructuring.

What this guide does not cover

  • Scottish or Welsh landlord tax rules
  • Commercial property structures
  • Pension-based property investment (SIPPs)

Before you start, you will need:

  • ·Understanding of your current income tax position
  • ·Knowledge of your existing mortgage terms
  • ·Awareness of your long-term portfolio goals

When To Use This Guide

Use this guide when:

  • You are a higher or additional rate taxpayer and mortgage interest is eroding your profits
  • You are buying your first or second property and want to choose the right structure from the start
  • You are considering transferring existing properties into a company
  • You want to understand the long-term tax and succession planning implications

Do not use this guide if:

  • Making a final decision without taking advice from a qualified accountant with property expertise
  • Assuming a company is always better — it depends entirely on your individual circumstances
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