Limited company or personal name? The trade-offs (in 2026)

Holding properties through a limited company (often called a Special Purpose Vehicle or SPV) became markedly more attractive after Section 24 phased in. But it isn't a slam-dunk for everyone.

The ledger

Pros of a Ltd:

• Mortgage interest is fully deductible (Section 24 doesn't apply).
• Corporation tax is 19-25%, often lower than higher-rate income tax.
• Profits stay in the company until you draw them.
• Easier to bring in family shareholders for inheritance planning.

Cons of a Ltd:

• BTL mortgage rates are typically 0.5-1.0% higher.
• Stamp duty applies to transfers in, including from your personal name (unless you qualify for incorporation relief, which is narrow).
• You pay corporation tax AND dividend tax to extract money.
• Lender choice is smaller, especially under 65% LTV.
• More admin (filing accounts, confirmation statement, HMRC corporation tax return).

When a Ltd usually wins

• New build-up of a portfolio (no transfer-in stamp duty issue).
• Higher-rate or additional-rate income from a day job.
• Plan to retain profits for years (compounding inside the company).
• Want to involve family shareholders.

When personal usually wins

• One or two properties only.
• You're a basic-rate taxpayer with little other income.
• You'll want all the rent each year.
• Highly geared (the higher Ltd mortgage rates wipe out the tax saving).

Whatever you choose, track properly

Mixing personal and company expenses is the fastest way to lose Ltd status in HMRC's eyes. Use separate bank accounts. Keep evidence (havelo stores cost receipts and photos against every maintenance request).

This is not tax advice. Speak to an accountant familiar with property structures before incorporating.