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🏢 Property SPV Ltd Co vs Personal⚖️ Section 24 vs 19%-25% Corp Tax💡 Dividend Allowance £500

Property SPV Limited Company vs Personal Tax Calculator 2026

Evaluate tax efficiency between individual residential ownership (Section 24 interest tax credit) and an SPV Limited Company (Corporation Tax + dividend extraction).

First-Layer Tax Illustration

Individual landlords pay income tax on profit before mortgage interest with a 20% tax reduction. Companies deduct mortgage interest as a business expense and pay Corporation Tax (19%–25%), but personal tax applies when dividends are extracted.

Buy-to-Let Structure Comparison Tool

Calculates personal Section 24 tax vs SPV Corporation Tax

This calculation does not model Personal Allowance loss, dividend extraction taxes, SDLT, CGT, or company accountancy fees.

Tax & Cash Flow Comparison Result

PERSONAL NAME (SECTION 24)

£6,000

First-Layer Personal Tax

Net Cash Flow: £3,000

SPV LIMITED COMPANY

£1,710

Corporation Tax (19%–25%)

Retained in Company: £7,290

Personal Property Profit (Before Section 24)	£21,000
Section 24 Finance Cost Tax Credit (20%)	-£2,400
SPV Corporation Taxable Profit (After Mortgage Interest)	£9,000
First-Layer Tax Difference (Personal vs Company)	Company Tax Lower by £4,290

Standard SIC Codes for Property SPVs

SIC Code 68209

Other letting and operating of own or leased real estate. Most common code for buy-to-let holding companies.

SIC Code 68100

Buying and selling of own real estate. Often used for property trading, flips, or development SPVs.

Frequently Asked Questions (6 Detailed FAQs)

There is no universal answer. An individual residential landlord is subject to the Section 24 finance-cost restriction, while a company calculates Corporation Tax under corporate rules. A company may be attractive where profits are retained, but dividend tax on extraction, administration, mortgage rates, SDLT, and CGT can alter the result.

Qualifying finance costs on residential property are not deducted from rental income when calculating an individual landlord’s taxable property profit. Instead, a tax reduction is generally given at the 20% basic rate, subject to statutory limits.

For the 2026 financial year, the small profits rate is 19% up to £50,000 and the main rate is 25% above £250,000. Profits between those limits can qualify for Marginal Relief. Thresholds are reduced for associated companies.

Common property-company SIC codes include 68209 (Other letting and operating of own or leased real estate) and 68100 (Buying and selling of own real estate). Selected codes should reflect actual company operations.

Funds can be extracted via salary, dividends, or director loan repayment. For 2026/27, the dividend allowance is £500, with dividend tax rates above it at 8.75% (basic), 33.75%/35.75% (higher), and 39.35% (additional).

Not automatically. Transferring to a connected company triggers SDLT at market value rules and potential Capital Gains Tax. Section 162 Incorporation Relief may defer gains if a genuine business is transferred for shares.