Personal vs company ownership
Holding through a UK company avoids Section 24 and taxes profit at corporation-tax rates, but adds running costs and a second layer of tax to get money out.
Who it applies to
Investors choosing how to hold buy-to-let — in their own name or via a limited company (often an SPV).
How it affects your return
In a company, mortgage interest is fully deductible and profits are taxed at 19% (small profits) to 25%. But extracting profit (dividends or salary) is taxed again personally, mortgage rates for company borrowing are usually higher, and there are accounting, ATED and administrative costs. For higher-rate, highly-geared, long-hold portfolios a company often wins; for a single lightly-geared flot held short, personal ownership can be simpler and cheaper.
Common mistakes
- Assuming a company is always better — the extraction tax and higher mortgage rates can erase the benefit.
- Forgetting ATED if a company holds a dwelling over £500,000 that isn't a genuine commercial let.
- Overlooking the cost and CGT consequences of moving an existing personal property into a company.
Investor action checklist
- Run the Company vs Personal calculator with your real numbers.
- Factor in accounting, higher company mortgage rates and profit-extraction tax.
- Take professional advice before incorporating or transferring existing property.
Disclaimer. This page is for general education only and is not tax, legal, mortgage, or investment advice. UK tax rules change and depend on your personal circumstances. Always consult a qualified UK tax adviser before making a decision.
Disclaimer. The information on Brick.sg is for general education and market research only. It is not financial, investment, tax, mortgage, or legal advice. Property investments involve risk, and returns are not guaranteed. Always seek independent professional advice before buying UK property.