Eleven years of saving to cover the cost of moving
Personal or Company Landlord
A company still deducts its mortgage interest, which is worth £2,996 a year here. Getting an existing property into one costs £33,364 first.
Personal or Company Landlord
A company still deducts its mortgage interest in full. That is the whole of the argument, and it only matters if you are geared.
What the comparison leaves out
Moving an existing property into a company is a sale to the company. Capital gains tax on the way out of your name, and stamp duty at the surcharge rate on the way in. On a £260,000 property that surcharge alone is £13,000.
A company pays corporation tax on the profit, and you then pay dividend tax on anything you take out. Money left in the company has only been taxed once so far.
Mortgages for company landlords usually carry a higher rate than personal buy to let, which eats into the advantage the interest deduction creates.
Companies file accounts and a corporation tax return every year. That is a real annual cost against a saving that only exists while you are borrowing.
Take the workbook
Both routes, with the cost of getting there set against the annual saving.
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RESOURCES
Fresh takes on business and accounting.
Trading profit is split on a time basis. Interest, rent, gains, donations and dividends each follow their own rule, and mixing them up misstates both accounting periods.
A long period of account needs two separate capital allowances computations, and since April 2026 they are not even calculated at the same writing down rate.
Company law allows accounts to run for 18 months; corporation tax never allows an accounting period longer than 12. Here is how the split is drawn.
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