Should you hold property personally or through a limited company?

This is one of the most common questions from landlords, particularly those with growing portfolios, and the right answer depends on your numbers more than any general rule.

Tax treatment

Companies pay Corporation Tax on rental profit and can generally deduct mortgage interest in full, while individuals are taxed under Income Tax rules with mortgage interest relief given differently, as covered in our related article.

Getting money out

Profit inside a company isn't automatically yours — extracting it as salary or dividends brings a second layer of tax to consider, which doesn't apply to income received personally.

Practical considerations

Moving existing property into a company can trigger Capital Gains Tax and Stamp Duty Land Tax as if you were selling and buying again, so the decision isn't just about ongoing tax treatment.

Our advice

We model both scenarios against your actual portfolio and mortgage costs before recommending a direction — this is rarely a decision with a universally right answer.