IN THE PAST decade, the UK property market has quietly undergone a structural revolution. What began as a tax-driven shift among higher-rate landlords has now become a mainstream trend — with over 70% of new buy-to-lets purchased through companies, and a growing number of investors treating their portfolios as businesses rather than side investments.
The reasons are clear. Frozen tax thresholds, rising mortgage rates, and the unpopular Section 24 restriction on mortgage interest relief have all squeezed traditional landlords, while larger and more professional investors — including overseas buyers and family offices — have quietly moved towards corporate ownership. This allows for lower tax rates, full deductibility of finance costs, and greater flexibility in reinvestment and succession planning.
At the same time, institutional capital continues to pour into the UK’s build-to-rent sector, with pension funds, private equity, and sovereign wealth investors acquiring or developing rental stock at scale. The message is unmistakable: whether you’re a single investor or managing a multi-million-pound portfolio, the property landscape now rewards structure, strategy, and scale.
…over 70% of new buy-to-lets are purchased through companies, and a growing number of investors treating their portfolios as businesses rather than side investments.
However, incorporating property holdings is not a straight forward exercise. The potential tax benefits — from Corporation Tax savings to mortgage interest relief and succession planning — must be balanced against complex rules on Capital Gains Tax (CGT), Stamp Duty Land Tax (SDLT), and legislative anti-avoidance. Done correctly, it can transform how you manage and grow your portfolio. Done wrong, it can trigger large unexpected tax bills and HMRC scrutiny.
In today’s Shipleys Tax insight, we take a closer look at when, how, and whether property investors, landlords, and developers — in the UK and abroad — should consider incorporating their portfolios, and how to structure the move in a way that is commercially robust, compliant, and future-proof.
The shifting sands…
UK investment property is increasingly held through companies, not personal names. Various datasets show the direction of travel:
- 70–75% of new buy-to-let purchases now go into companies, and the stock of company-owned BTLs keeps rising.
- 2025 has seen a surge in newly incorporated BTL companies (c. 67k expected), including more international landlords using UK companies.
- On the institutional side, Build-to-Rent continues to scale: 2025 updates show rising capital deployment and a deepening pipeline of professionally managed rental homes — i.e. corporate ownership at scale.
Why this matters: whether you own five units or fifty, the market (and lenders) increasingly assumes a corporate wrapper. That doesn’t mean incorporation is always right—but it does mean you should evaluate it properly.
Why more investors are going limited – summary points
- Tax rate arbitrage (corporation vs personal): Company profits are taxed at 19–25%, versus personal rates up to 45% for landlords.
- Finance cost deductibility: Companies can still deduct 100% of mortgage interest (unlike Section 24-restricted individuals).
Company profits are taxed at 19–25%, versus personal rates up to 45% for landlords.
- Reinvestment & scale: Retaining profits inside the company can make it easier to fund capex and acquisitions (and often plays better with lenders as your portfolio grows). Industry evidence shows professional/portfolio and institutional investors are leaning this way.
- Succession options: With the right share design, you can plan control, income and eventual handover far more neatly than with personally-owned bricks and mortar.
Institutions are not doing this by accident. The rise of professionally managed rental (BTR/single-family) is a clear signal that corporate ownership is the default for scalable portfolios.
Property tripwires
Moving assets from you to your company can trigger tax and lending events. Common pitfalls we regularly help clients avoid:
- CGT at market value on transfer unless qualifying reliefs can be applied.
- SDLT on the company’s acquisition price, including surcharges — partnership routes and genuine business status matter.
Moving assets from you to your company can trigger tax and lending events
- Mortgage reset risk: lenders may re-price or require a new facility when title changes.
- Anti-abuse scrutiny: “form-over-substance” restructures invite HMRC challenge.
These can often be managed with commercially robust planning—but only if mapped before you pull the trigger.
Where Shipleys Tax advice fits
Shipleys Tax act for landlords, developers and cross-border investors who want the benefits of a company without the nasty pitfalls:
- Feasibility modelling: side-by-side projections (personal vs company) so you can see the real after-tax outcome.
- Reliefs & route selection: assessing whether you’re a genuine property business, if partnership routes make sense, and how to minimise/mitigate CGT/SDLT on transfer.
- Banking & debt coordination: working with your broker/lender so finance aligns with the structure (and the timetable).
- Succession & wealth planning: company share design, Family Investment Company (FIC) options, and clean governance for future exits.
- Ongoing compliance: accounts, corporation tax, VAT where relevant—and steady optimisation as rules shift.
Conclusion
Incorporating your property portfolio isn’t a simple formula — but for many serious investors, it has become the foundation of modern, scalable property investment. A company structure can open the door to lower tax rates, full finance deductibility, reinvestment flexibility, and far more controlled succession planning.
However, success lies not in the decision but in the execution. The process must be commercially justified, carefully modelled, and compliant with HMRC’s rules on reliefs and anti-avoidance. A poorly timed or poorly structured incorporation can easily erode the very benefits it was meant to deliver.
At Shipleys Tax, we specialise in helping landlords and investors navigate that fine line — turning complex legislation into practical, tax-efficient strategies.
For further assistance or queries, please contact:
Sheffield: 0114 303 7076 Leeds: 0113 320 9284 Manchester: 0161 850 1655
Email: info@shipleystax.com
Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.
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