7 Feb 2025
Limited Company vs Single Name Buy to Let
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages. Here's a breakdown:
Sole Name (Individual Ownership)
Advantages:
- Simplicity: Easier to set up and manage without the need for company accounts or additional legal structures
- Flexibility: Direct control over the property and rental income without corporate constraints
- Lower Initial Costs: No incorporation fees or ongoing compliance costs associated with running a company
Disadvantages:
- Higher Tax Rates: Rental income is taxed at personal income tax rates, which can be as high as 45% for higher rate taxpayers
- Mortgage Interest Relief Restrictions: Full mortgage interest can be offset against rental income, reducing taxable profits
- Personal Liability: Personal assets are at risk if there are legal claims or debts related to the property
Limited Company Ownership
Advantages:
- Tax Efficiency: Rental income is taxed at corporation tax rates (19-25%), which can be lower than personal income tax rates
- Mortgage Interest Relief: Full mortgage interest can be offset against rental income, reducing taxable profits
- Inheritance Tax Planning: Shares in the company can be passed to heirs without incurring stamp duty
- Asset Protection: Limited liability protects personal assets from claims related to the property
Disadvantages:
- Higher Initial Costs: Incorportation fees, ongoing compliance costs, and potential accounting fees
- Complexity: Requires maintaining company accounts, filing annual returns, and adhering to company
- Limited Mortgage Options: Few mortgage products available for limited companies, and interest rates may be higher.
Ultimately, the best choice depends on your individual circumstances, including your tax situation, investment goals, and willingness to manage the administrative responsibilities of a limited company. Consulting with a financial advisor or accountant can help you make the most informed decision.
Recent posts
Best UK Mortgage Rates this Week
Yesterday
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Nationwide is the first lender to allow mortgage deeds to be signed electronically and without the need for a witness.
‘My First Mortgage’ from major high-street lender Santander is specifically for those wanting to buy their first property. It allows first-time buyers to purchase 98% of the property’s value. However, certain criteria must be met to be eligible.
Maidenhead, Berkshire – 26th January 2026 – Dedicated independent mortgage experts, Mortgage Required, are delighted to have acquired fellow experienced brokerage, Y-Not Finance.
The acquisition connects two well-respected brokerages, both with a wealth of experience and shared values, to continue providing the best advice on all aspects of the mortgage market.
As part of the UK government’s plans to change the leasehold system to help families struggling with unaffordable ground rent costs.
The Prime Minister announced this morning (27 January) that ground rents will be capped at £250 per year, reverting to a peppercorn rate after 40 years.
Additional borrowing, also known as a further advance, is when you borrow more money on your existing mortgage for a specific reason agreed with your lender.
Here are five of the most common reasons for additional borrowing.
UK Housing Market Round-Up: 2025
30 Dec 2025
Property search site Zoopla has estimated that the UK housing market will end 2025 with approximately 1.15 million completed sales – 4.5% more than the previous year.
Take a look at the 2025 summary of the UK housing market.
Buying in the New Year
29 Dec 2025
If buying your first property, or moving home, is on your to-do list this year, the new year can be a great time to take this big step. In this short blog, we look at what you need to consider as you plan and prepare for your home-buying journey.
More information
Trusted by
