Should I put my property in a limited company?

Never buy an investment property in your personal name. That's the blunt version. Here's the maths behind it.

You can only claim a flat 20% credit on your mortgage interest. A limited company deducts the whole thing before tax. That single rule is why sixty three percent of landlords now buy through a company.

The numbers

Same property. £15,000 a year in rent, £6,000 in mortgage interest. Here's exactly how each figure is worked out:

Just over £3,000 less tax in year one, on a single modest property.

The government isn't done moving the goalposts

Confirmed in the Autumn 2025 Budget: from April 2027, income tax rates on rental income rise by a further 2 percentage points, to 22% basic rate, 42% higher rate, 47% additional rate. That's on top of Section 24 already limiting your mortgage interest relief. Capital gains tax has been tinkered with too, the annual exempt amount has already been cut to just £3,000, and as of mid-2026 senior figures in government have floated equalising capital gains tax with income tax entirely, which could push CGT as high as 40 to 45% for higher earners.

Large property investment firms are structured as limited companies. Changing corporation tax rules in a way that hits them would carry a real economic cost, which is exactly why it's a much harder lever for any government to pull than personal property tax.

Two things to check first

This works best if you're reinvesting profit, not drawing it out to live on, since taking money out of a company adds dividend tax on top.

And if you already own a property personally, moving it into a company later is treated as a sale, so it's far cheaper to get this right before you buy than to fix it after. Maximising your property wealth starts with getting the structure right from day one. Talk to us before you buy.

Watch on YouTube: https://youtube.com/shorts/mxx8LWvHCUI