Home / Glossary / Limited company buy-to-let
What is Limited company buy-to-let?
Limited company buy-to-let means holding rental property in a company, often a special purpose vehicle (SPV), rather than in your own name. The company pays Corporation Tax on its profits.
Why it matters to landlords
Companies can deduct mortgage interest in full, so Section 24 does not apply. But taking money out as dividends or salary is taxed again, and mortgages can cost more.
Moving existing properties into a company is usually treated as a sale, which can trigger Capital Gains Tax and Stamp Duty. Get advice before restructuring. Companies are not in Making Tax Digital for Income Tax.