Question 1

Should I buy UK buy-to-let property in a personal name or an SPV Limited Company?

Accepted Answer

For higher-rate (40%) and additional-rate (45%) taxpayers, buying property through an SPV Limited Company is generally more tax-efficient because mortgage interest is 100% tax-deductible as a business expense and profits are taxed at Corporation Tax rates (19%-25%) rather than personal income tax rates.

Question 2

What is Section 24 and how does it affect individual landlords?

Accepted Answer

Section 24 of the Finance (No. 2) Act 2015 eliminated the ability for individual landlords to deduct mortgage interest from rental income before calculating income tax. Instead, individual landlords receive a 20% tax credit, which severely penalizes higher-rate taxpayers.

Question 3

What SIC codes are required for a UK Property SPV Limited Company?

Accepted Answer

When incorporating an SPV property company with Companies House, use SIC code 68209 (Other letting and operating of own or leased real estate) or 68100 (Buying and selling of own real estate). Expat lenders strictly require pure property SIC codes.

Question 4

How do I extract profits from a UK Property SPV Limited Company?

Accepted Answer

Profits can be extracted via: 1) Director's Dividend payments (after £500 annual tax-free allowance), 2) Director's Salary (up to the Primary National Insurance Threshold), or 3) Director's Loan repayments if you originally funded the company with personal capital.

Question 5

Are mortgage interest rates higher for an SPV Limited Company than personal name?

Accepted Answer

Typically yes. Limited company BTL mortgage interest rates and arrangement fees are slightly higher (approx 0.2%–0.5% higher) than personal name BTL mortgages, but the tax savings under Section 24 usually far outweigh the extra mortgage cost for higher-rate taxpayers.

Question 6

Can I transfer existing personal buy-to-let properties into an SPV Ltd Co?

Accepted Answer

Transferring personal property into a Ltd Company is treated by HMRC as a sale at full market value, triggering Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT) liabilities unless specific partnership incorporation relief (Section 162) criteria are met.

Property SPV Ltd Company vs Personal Tax Calculator

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