Limited Company Buy-to-Let: Time to Rethink?

If you’re a landlord with more than one property, you’ve probably noticed the landscape has changed. Stricter regulations, tighter margins, and rising tax have made it harder for casual landlords to turn a solid profit. That’s why more and more landlords are now choosing to own their properties through a limited company, quickly becoming the new normal.

Why? One of the biggest drivers is tax efficiency. Rental income held in a limited company is taxed at the corporation tax rate (currently 25%), rather than personal income tax rates, which can be as high as 45%. You can reinvest profits directly into the company, helping you grow your portfolio without paying personal tax right away

It also gives you more control over how your property business is run, keeping your business finances separate from your personal ones. There’s some added admin and setup costs, but for many landlords, the long-term financial benefits make it worthwhile.

A growing number of lenders now offer competitive mortgage products specifically for limited companies, making this route more accessible than ever. With the Renters’ Rights Bill and new energy efficiency requirements likely on the horizon, the market is becoming more regulated.

Pushing landlords to take a more professional, long-term view and a limited company setup could be a key part of that. However, it’s not the right move for everyone.

If you’re thinking about the next step for your portfolio, or your current mortgage deal is coming up for renewal, now is the time to find competitive deals, speak with a trusted tax specialist and gain tailored advice.

If you would like to arrange a free no obligation appointment to review your options then please contact me today.

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