NEARLY half of Britain’s buy-to-let (BTL) properties are now held through companies as landlords increasingly move away from owning investment properties in their personal names – but experts have warned the move isn’t right for every landlord.
Some 45.1% of UK BTL properties are company-owned, with the proportion rising to 57.6% among larger landlords, according to Lendlord. The figures show how limited company ownership has moved into the mainstream for people treating property as a long-term investment business.
One of the biggest reasons is tax, experts say. Individual landlords can no longer deduct residential mortgage interest from their rental income in the way companies generally can when calculating taxable profits.
This can make company ownership particularly attractive to higher-rate taxpayers and landlords who intend to leave profits within the business to fund further purchases.
But experts warn that setting up a limited company is not automatically the cheapest or most tax-efficient option.
Company buy-to-let mortgages can come with higher rates and fees, while landlords also face accounting and administrative responsibilities and potentially another tax bill when they eventually take profits out of the company.
The decision can also become considerably harder and more expensive to reverse later.
Moving properties already owned personally into a company can potentially involve Capital Gains Tax (CGT), Stamp Duty Land Tax (SDLT), refinancing and legal costs.
Tax
Iain Thompson, Director at Evolve Finance, said landlords need to make a tax calculation during their decision.
He added: “The choice between personal name and limited company structures isn’t about passive wealth anymore – it is a pure calculation of tax exposure versus mortgage pricing. Holding BTLs personally is simpler and offers lower mortgage interest rates.
“However, since Section 24, higher-rate taxpayers can no longer deduct mortgage interest from rental income, making personal ownership a massive tax trap that can artificially push landlords into higher tax brackets on paper. Conversely, a limited company allows 100% mortgage interest tax deduction and lets landlords retain profits inside the business, being taxed on the profit not on the rental income.
“The catch is that corporate BTL mortgages carry slightly higher interest rates. Setting it up requires registering a clean Special Purpose Vehicle (SPV) with specific Standard Industrial Classification (SIC) codes (usually 68209). In 2026, the smart play is running a holistic stress-test: if corporate mortgage friction costs less than your personal tax liability, which it almost always does, the SPV wins.”
Hannah Vandervennin, Director – Mortgage Adviser at The Mortgage Consultancy, said it isn’t just about tax.
She added: “Limited company or personal ownership often gets treated as a tax question. For serious property investors in 2026, it is really a business planning question. The first property decision can shape the next 10. We regularly ask clients where the property in front of us fits into the wider plan. Is this one purchase, or property one of 10? Will profits be reinvested? Will other people be involved? Is this something you want to pass down?
“Experience teaches you that unwinding decisions later can be time-consuming and expensive. Tax, refinancing, ownership and incorporation all get harder once the assets are already there. Good advice early on can pay for itself many times over. Think about the portfolio you want to build, then work backwards into the structure.”
Tracey Dixon, Buy-to-Let Mortgage Specialist & Owner at Cardiff-based Pure Mortgage and Protection, said you need to make a decision before purchasing property.
She added: “A limited company is not automatically best for every landlord. The right structure depends on your tax position, portfolio plans and whether you need the rental profits as personal income. Buying personally is simpler, with fewer ongoing costs and often a wider choice of lower-rate mortgages.
“However, individual landlords receive only basic-rate tax relief on mortgage interest, which can affect higher-rate taxpayers. A company can deduct mortgage interest as a business expense before corporation tax, potentially benefiting landlords who retain profits to expand. Against that, company mortgages may have higher rates and fees, accounting duties and potential tax when profits are withdrawn.
“Decide before purchasing wherever possible. Moving an existing property into a company may trigger SDLT, CGT and refinancing costs. Investors need joined-up advice from a specialist broker and property tax adviser – not simply the cheapest mortgage or lowest headline tax rate.”
Decision
Tony Sanchez, Founder at Bridging Loan Directory, said it can be expensive to change your mind.
He added: “A limited company is not automatically right for every landlord. Personal ownership is simpler and can offer more mortgage choice. However, individual landlords receive only basic-rate tax relief on residential finance costs, which can disadvantage higher-rate taxpayers.
“A company can generally deduct qualifying mortgage interest when calculating taxable profit. It may suit someone building a portfolio and retaining profits for further purchases, but it brings filing duties, higher mortgage pricing and further tax when profits are withdrawn. The choice should be made before buying.
“Moving an existing property into a company is normally a sale and repurchase, potentially triggering CGT, SDLT, refinancing and legal costs. An investor will usually establish an SPV through Companies House, select an appropriate property SIC code and apply for a company mortgage. The tax, finance and exit should be modelled with an accountant and broker before exchange.”
Mark Alexander, Founder at Norwich-based Property118.com, said personal ownership may be easier.
He added: “There is no one-size-fits-all answer: personal ownership is simpler and may suit landlords who need to spend the rental profits, whereas a limited company can be better for retaining profits, reinvesting and succession planning, particularly because mortgage interest is treated more favourably.
“However, companies bring higher borrowing and administration costs, and extracting profits can create another layer of tax, so the share structure, funding and mortgage strategy should be planned before buying – not after – because transferring properties later can trigger CGT, SDLT and refinancing costs.”
