The hidden cost of incorporating
When you move properties into a company, it's usually treated as a sale at market value. That can mean capital gains tax for you and stamp duty for the company, at the higher rates for additional properties. Then the mortgages normally need replacing with company lending.
Some reliefs can reduce these costs, but they depend on how your portfolio is run and owned, and the conditions are strict. Landlords who get it wrong can end up paying the tax anyway, sometimes years later.
Thinking about a company? This is one of the decisions most worth getting specialist advice on before you act. Request a call back.
Frequently asked questions
Do I pay stamp duty moving property into my own company?
Usually, yes. A company buying residential property pays the higher rates, based on market value, even if you own the company. Some reliefs can apply in limited circumstances.
Is there capital gains tax on transferring property to a limited company?
Usually, yes, because it's treated as a sale at market value. Incorporation relief can defer the gain, but only if the letting activity amounts to a business and other conditions are met.
Can I keep my existing buy-to-let mortgages?
Normally not. Personal buy-to-let mortgages usually have to be repaid and replaced with limited company lending, which may come with early repayment charges and different rates.
Request a call back
Tell us a little about your situation and we'll call you, usually within one working day, to understand what you need. If it would help, we'll then put you in touch with a landlord tax specialist. We'll always tell you who they are before passing on your details. We don't give advice ourselves, and there's no obligation.