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D6
Personal Name vs Limited Company for Next Purchase
For a brand-new purchase, the comparison is simpler — no SDLT/CGT trigger to worry about.
Compare your options
Personal name
Pros
- Cheaper mortgage rates
- Simpler tax
- No corp tax filing
Cons
- Section 24 limits relief to 20%
- Profit added to your personal income
Best for: Basic-rate taxpayers, single property owners.
Limited company (SPV)
Pros
- Full mortgage interest deduction
- 19–25% corp tax
- Cleaner inheritance planning
Cons
- Higher mortgage rates (~0.5–1%)
- Personal guarantees still required
- More admin
Best for: Higher/additional-rate taxpayers building a portfolio.
Worked scenarios
£200k purchase, 75% LTV, higher-rate taxpayer
| Option | Outcome |
|---|---|
| Personal | Net profit often near zero after Section 24. |
| Ltd | Materially higher net profit; can retain for next purchase. |
Decision checklist
- Confirm tax band including the new rental income.
- Get SPV mortgage quotes (Limited Company BTL).
- Check accountant fees for SPV (£700–£1,500/yr typical).
- Plan how you'll extract profit (dividends vs retain).
Relevant tools
Related guides
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