Should I put my buy-to-let properties into a limited company?

This week, we’ve had an interesting question regarding by-to-let property management, and with permission of those who submitted, we’ve our answer with you.

Remember, email us at with any of your burning questions, and we’ll get back to you.

buy-to-let properties

(Read Time: Approx. 3 minutes)

Topics Discussed:

  • We answer whether a buy-to-let property business is worth incorporating
  • Other considerations when creating a Buy-To-Let property business.

Exploring the Benefits and Costs of Incorporating Buy-to-Let Properties

Fred from Derby asks whether it’s beneficial to transfer his four buy-to-let properties into a limited company before expanding his portfolio.

This decision requires careful consideration of various financial and legal aspects.

Consulting a Professional

Before making any changes, it’s crucial to discuss your goals with a qualified accountant.

Here at, we can offer bespoke advice based on your financial situation, future goals, and the current tax legislation.

Tax Implications and Cost Analysis

Incorporating buy-to-let properties can be advantageous, particularly for higher earners aiming to reinvest their rental profits.

The corporate tax rate on profits is generally lower than the higher personal income tax rates.

Additionally, mortgage interest costs are deductible, which is no longer the case for individual landlords taxed at higher rates.

However, withdrawing profits from the company can be costly if you have other substantial income sources.

Handling Existing Properties

Transferring existing properties into a company structure involves significant costs.

You’ll face stamp duty charges and potentially capital gains tax on any appreciated value since purchase.

These financial burdens require a substantial upfront investment and may take years to offset against the benefits of incorporation.

Strategies to Mitigate Tax Burdens

There are strategies to mitigate these tax burdens, such as claiming incorporation relief if transferring a rental business (not just properties) or initially transferring properties into a partnership structure to potentially avoid some immediate taxes.

Nevertheless, the complexity of these strategies means professional advice is essential.

Send us an email today if you’re weighing the pros and cons of incorporating a property business, and we’ll do our best to advise you.

Caution Against Overly Optimistic Schemes

Be wary of schemes that promise tax advantages without drawbacks. Such strategies are often scrutinised by HMRC and could lead to significant legal and financial issues.

We’ve discussed some of these schemes in blog posts before, and in our experience, avoid anything which mentions the word “scheme”.

Final Thoughts

Whether considering property incorporation, the key lies in thorough preparation and professional advice.

For further assistance and expert advice on property tax matters, don’t hesitate to reach out to us at

We’re here to answer all your queries and help you navigate the complexities of property investment and management.

Contact us today at 01772 788200 to find out more about how we can help, or WhatsApp us out-of-hours at 07787 010190.

Sending an e-mail is simple too, just fill out this short form and we’ll get back to you!

Kind regards,

Ilyas Patel