From experience a lot of landlords “dip their toe” into the buy to let market by purchasing their first rental property in their personal name. Once they have realised that it’s relatively easy to make money from buy to let investments, they often expand their portfolio. However, this can lead to higher tax liabilities, particularly for higher-rate taxpayers.

Why Consider a Limited Company for Buy-to-Let?

By using a limited company as a special purpose vehicle for property use, this can mitigate some of the tax paid and reduce the tax burden. Since the company is a separate legal entity, it is subject to corporation tax rather than personal income tax.

Additionally, landlords can offset certain costs including the interest-only portion of their mortgage payments, which can significantly impact tax efficiency—especially for those with a buy-to-let portfolio.

Buying a Personally Owned Buy-to-Let Through a Limited Company

What a lot of people don’t realise is that a landlord can buy a personally owned buy to let through a limited company they own. his can be done using a director’s loan, leveraging the equity already accrued in the property—essentially functioning like a remortgage.

While stamp duty and capital gains tax (CGT) may apply, the long-term tax savings on a larger portfolio can make this strategy worthwhile.

Expert Mortgage Advice for Buy-to-Let Investors

We at the Mortgage Lady UK are skilled at dealing with small investors to large portfolio clients to help navigate the complexities of buy-to-let mortgages and limited company structures.
We always recommend speaking with a qualified accountant or tax specialist to ensure the best strategy for your situation.

Get in touch today to discuss how we can help you maximise your buy-to-let investments!