More and more property investors are choosing to buy through a limited company. Why? It’s more tax-efficient, gives you limited liability, and helps with inheritance planning. Here’s a simple guide to get set up - fast.
1. Register Your Company
- Go to Companies House and register your company online.
- Pick any name you like, you can change it later, so don’t overthink it.
- Use SIC code 68209 for “buying and letting of own real estate.”
- It costs about £50 and usually takes 48 hours.
2. Open a Business Bank Account
- Once your company’s set up, open a business bank account in your company’s name.
- You’ll need your company registration documents and some ID.
3. Get a Mortgage in the Company’s Name
- Now you can approach lenders for a limited company buy-to-let mortgage.
- Most providers are fine with newly set-up companies - no long trading history required.
- Rates are sometimes a little higher, but the tax benefits often make up for it.
4. Why Use a Limited Company?
- Offset mortgage interest as an expense, which you can’t fully do in your own name
- Limited liability protects your personal assets
- Easier inheritance planning, it’s simpler to pass on shares than individual properties.
5. Things to Consider
- You’ll have extra admin: annual accounts and company tax returns.
- You might pay dividend tax when withdrawing profits, so get advice from an accountant.
Final Thoughts
Setting up a company to buy property is quick, affordable, and can save you a lot in the long run. You don’t need to wait years, get started in days and enjoy more control and flexibility over your investments.