Is It Time to Go Limited? What Every Property Investor Should Know

Why Do Property Investors Use Limited Companies?

If you’ve been around the property game lately, you’ve probably heard investors talking about buying through a limited company. But why is this becoming such a popular move?

💸 It’s All About Tax Efficiency

When you buy property as an individual, rental income gets taxed as personal income—which can be steep if you're in a higher tax bracket. But through a limited company, profits are taxed at the corporation rate (currently 25%), which can mean serious savings.

🏦 Mortgage Interest Relief

Here’s a big one: individual landlords can no longer deduct all their mortgage interest from rental income. But companies still can. That means better cash flow and more breathing room for your portfolio.

🔁 Reinvesting Profits

With a company, you can leave profits inside the business and use them to buy more properties—without triggering personal tax. It’s a smart way to grow your portfolio faster.

👨‍👩‍👧 Passing It On

Planning to leave your empire to your kids? Shares in a company are easier to transfer than individual properties, making inheritance planning smoother and more flexible.

⚠️ But It’s Not for Everyone

There are downsides too. Company mortgages can be pricier, and you’ll have extra admin like annual accounts and filings. Plus, taking money out of the company (as dividends or salary) can still attract personal tax.

🧠 So Who Should Consider It?

If you’re building a serious portfolio, in a higher tax bracket, or planning long-term growth, buying through a limited company could be a smart move. But if you’re just dipping your toes into property, it might not be worth the hassle.