The situation
Since Section 24, higher-rate personal-name landlords pay tax on rental income that would previously have been offset by mortgage interest. Ltd Co structures preserve full interest deductibility.
How we approach it
We arrange the Ltd Co refinance side (BTL mortgages in a Ltd Co are a fully developed market now) alongside your tax adviser's view on transfer cost and incorporation relief eligibility.
What that looks like in practice
- Ltd Co BTL mortgages available at broadly personal-name pricing now
- SDLT surcharge on transfer (3% + additional dwelling) usually applies
- CGT triggered on transfer at market value — incorporation relief may defer
- Portfolio incorporation may qualify for incorporation relief; single property rarely does
- New purchases can go straight into a Ltd Co — no transfer needed
Typical timeline
- Week 1-2Full tax modelling with your accountant, decision to proceed.
- Weeks 3-8Ltd Co set up, Ltd Co mortgages agreed, transfer documentation.
- Weeks 8-12Simultaneous transfer and refinance.
Common questions
Is it worth transferring existing properties?
Sometimes — if hold period is long (10+ years), transfer cost is amortised. Often the honest answer is: keep existing personal, buy new in Ltd Co.
What is incorporation relief?
TCGA 1992 s162 — defers CGT if the property business genuinely qualifies as a business. Bar is high; specialist advice essential.
Do Ltd Co BTL rates cost more?
Historically yes, now largely equalised for straightforward cases. Larger portfolios and HMOs sometimes cheaper in Ltd Co.
Model transfer cost vs long-term saving
Send your portfolio schedule and marginal tax rate — we'll bring in tax advice and quantify the decision honestly.