Property tax - Should I put my property in a company? How much tax could you save as a landlord on your property?
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Property tax - Should I put my property in a company? Should I put my property in a company?
 
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If you have two or more buy-to-let properties it may be worthwhile holding those investments through a limited company. The first £10,000 of annual profits or gains made inside the company are tax free compared with £7,900 of tax exempt personal gains. The company will pay tax at 23.75 % or 19% on any excess profits while you pay tax at 40%.

These figures sound attractive, but they will vary if you or your spouse already control one or more companies. Extracting profits from the company in the short term can generate additional personal tax on dividends or salary.

However the use of a company for long term investments may help
you save capital gains tax and stamp duty, if you sell the company
on as a rental business.

Lenders are aware of the tax advantages and there are several mortgage products on the market specifically designed for buy-to-let companies. But please don't rush into anything, a limited company is a long term commitment and needs careful planning.

 
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