Buy-to-let structure

Limited company
or personal name?

Since Section 24 removed mortgage interest relief for personal landlords, the answer depends entirely on your tax position. Enter your figures and see which structure leaves more money in your pocket.

△  Section 24 removed personal mortgage interest relief
△  Higher rate landlords most affected by Section 24
△  Ltd Co BTL rates typically 0.3–0.8% higher
△  Transferring to Ltd Co triggers CGT and SDLT
△  Retained profits compound significantly over time
△  Always take advice before changing structure
△  Independent BTL advice · FCA regulated
△  Section 24 removed personal mortgage interest relief
△  Higher rate landlords most affected by Section 24
△  Ltd Co BTL rates typically 0.3–0.8% higher
△  Transferring to Ltd Co triggers CGT and SDLT
△  Retained profits compound significantly over time
△  Always take advice before changing structure
△  Independent BTL advice · FCA regulated
Section 24 applied Corporation tax 2024/25 Dividend tax included Annual saving calculated
Tax comparison calculator

Select your income tax
band first

Your personal tax rate is the biggest factor in whether a limited company makes sense. Select your band below — this is your rate on income outside the property, not rental income alone.

Your personal income tax band
Property income
Annual rental income
Total rent received per year
£
£3k£200k
Annual mortgage interest
Interest portion only — not full repayment
£
£0£100k
Annual running expenses
Letting agent, maintenance, insurance, repairs
£
£0£50k
Limited company costs
Extra annual accountancy cost
Ltd Co accounts cost more than personal SA return — typically £1,000–£2,500 extra per year
£
£0£5,000
Dividend tax rate
Rate you'd pay on dividends extracted from the company
%
Personal ownership
After-tax annual profit
£3,800
Rental income£18,000
Less: running expenses(£3,600)
Taxable rental profit£14,400
Income tax on rental profit(£5,760)
Less: 20% interest tax credit+ £1,600
Net tax bill(£4,160)
Less: mortgage interest(£8,000)
After-tax cash profit£3,800
Limited company
After-tax profit (retained in company)
£5,242
Rental income£18,000
Less: mortgage interest(£8,000)
Less: running expenses(£3,600)
Less: extra accountancy cost(£1,500)
Company taxable profit£4,900
Corporation tax (19%)(£931)
Profit retained in company£5,242
Less: dividend tax if extracted(£1,769)
After dividend tax£3,473
The verdict
At a 40% tax rate, the limited company structure saves £1,442 per year when profits are retained — but costs £327 per year if you extract all profit as dividends.
Annual saving (retained)
£1,442
5-year saving (retained)
£7,210
After dividend extraction
Personal better by £327/yr
These figures assume all company profit is extracted as dividends. If you plan to reinvest or accumulate profits in the company, the limited company advantage is significantly greater. The right answer depends on your exit strategy, portfolio size, and long-term plans. Speak with Nathan and an accountant before making a structural decision.
Before you decide

What the calculator
cannot tell you

Tax implication
Transferring existing properties triggers CGT and SDLT
Moving a personally-owned BTL into a limited company is treated as a sale for both Capital Gains Tax and Stamp Duty purposes. The costs can be significant — this calculator is most useful for new purchases, not restructuring existing portfolios.
Mortgage access
Limited company BTL mortgages carry higher rates
Company BTL products typically carry rates 0.3–0.8% higher than personal BTL. On a large loan this can narrow the tax advantage significantly. The calculator uses your mortgage interest figure — make sure it reflects the rate you'd actually pay through a company.
Long-term planning
Retained profits compound significantly over time
If you plan to build a portfolio and reinvest profits rather than extract them, the limited company becomes increasingly attractive over time. The 5-year figure above assumes annual extraction — retained profits make the case even stronger.
Professional advice
This is a starting point — not financial or tax advice
The right structure depends on your complete financial picture, existing assets, pension position, exit plans, and personal circumstances. Always take advice from both a specialist mortgage broker and a qualified accountant before deciding.

Ready to explore
the right structure?

Nathan works with both individual and limited company BTL landlords and knows which lenders are genuinely competitive for each. Get the mortgage right first — the structure second.

Speak with Nathan Buy-to-let mortgages

FCA regulated · Whole-of-market · Independent advice