Limited Company
Buy-to-Let Mortgages
Purchase through an SPV for tax efficiency on your property portfolio. We'll help you find the right lender and guide you through the process.
Why buy through a limited company?
Since changes to mortgage interest relief in 2020, buying through a limited company has become increasingly popular for landlords
Corporation Tax Benefits
Pay corporation tax (currently 25%) on profits rather than higher income tax rates (up to 45%).
Full Mortgage Interest Relief
Unlike personal ownership, limited companies can still deduct 100% of mortgage interest as an expense.
Retained Profits
Keep profits in the company for future investments without paying additional personal tax.
Portfolio Growth
Easier to scale your portfolio and bring in investors or partners through share structures.
Asset Protection
Limited liability means your personal assets are protected from business debts.
Inheritance Planning
Shares can be transferred more easily than property, potentially reducing inheritance tax.
Tax comparison: Personal vs Limited Company
1Personal Ownership
- Mortgage interest only 20% tax credit (not deductible)
- Pay income tax at your marginal rate (up to 45%)
- Higher rate taxpayers pushed into higher brackets
- Lower mortgage rates available
2Limited Company (SPV)
- 100% mortgage interest fully deductible
- Pay corporation tax at 25% (or 19% for small profits)
- Retain profits in the company tax-efficiently
- Slightly higher mortgage rates
Example: A higher-rate taxpayer with £30,000 rental profit could save over £6,000 per year by using a limited company structure.
Eligibility criteria
UK registered limited company (or willing to set one up)
SIC codes 68100 or 68209 for property activities
Directors must be UK residents aged 21-75
Minimum 25% deposit in most cases
Property must meet rental coverage requirements (typically 125-145%)
Clean credit history for all directors
Get your limited company BTL quote
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