Personal vs limited company ownership
6 min read · 2025-01-15
Personal ownership is simpler but exposes higher-rate landlords to Section 24; a limited company keeps full mortgage interest deductibility but adds Corporation Tax, accounts, and director admin.
- Personal: simpler, lower compliance, but Section 24 hits higher-rate taxpayers
- Limited company: full mortgage interest deductibility, Corporation Tax on profits, dividends taxed when extracted
- Transferring an existing personally-owned property in to a company triggers SDLT and CGT
- Generally only worth a company if you are a higher-rate taxpayer with material mortgage interest