--- title: How UK Property Investors Leverage Company Structures description: Discover why a growing number of landlords in the UK are structuring their property businesses as limited companies. image: https://blog.magnateassets.com/hubfs/Unlocking%20Profit%20Potential%20How%20UK%20Property%20Investors%20Leverage%20Company%20Structures.jpg --- [![logo](https://blog.magnateassets.com/hs-fs/hubfs/logo.png?width=216&height=50&name=logo.png "logo")](https://magnateassets.com/) × - [Properties](https://www.magnateassets.com/en/searchresult) - [Off-Plan](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [HMO (Houses in Multiple Occupation)](https://www.magnateassets.com/en/property-hmo) - [Student Accommodations](https://www.magnateassets.com/en/property-student-accommodations) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Concierge](https://www.magnateassets.com/en/property-concierge) - [Land Options](https://www.magnateassets.com/en/searchresult?proFor=Local&proType=Land%20Options&country=UK) - [Property Bonds (Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) - [Locations](https://magnateassets.com/en/location) - Resources - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - Finance, Tax & Legal - [Mortgage Calculator](https://magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) - About Us - [Meet the Team](https://www.magnateassets.com/en/meet-the-team) - [Contact Us](https://magnateassets.com/en/contact-us) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Developer Partnerships](https://www.magnateassets.com/en/developer-partnerships) # Unlocking Profit Potential: How UK Property Investors Leverage Company Structures Published by Keith Egan on Oct 20, 2023 Many landlords are strategically shifting to set up their property business as a limited company. Recent data from Hamptons reveals that a staggering seventy-four percent of landlords purchasing buy-to-let properties in 2023 opted for this structure. But what's behind this rising trend, and why is it becoming such a popular choice in the property investment realm?   **Navigating a Shifting Landscape** Property lettings have long been renowned for their challenges. Increased compliance obligations have placed additional pressure on landlords, prompting them to reevaluate the long-term viability of investing in this sector. Although the government hints at a more landlord-friendly approach with the scrapping of EPC requirement upgrades, the landscape remains complex.   **The Taxing Dilemma** High mortgage costs, coupled with the repeal of section 24 (meaning mortgage interest can no longer be deducted from taxable income), have intensified the challenges for individual landlords. Enter limited companies as a potential solution to this complex financial equation.   **A Corporate Tax Haven** Setting up your property business under a limited company umbrella benefits you from favourable corporation tax rates, typically lower than personal income tax. This structure also permits landlords to deduct mortgage interest costs from their company's income, providing a significant financial advantage.   **Unlocking Mortgage Opportunities** Access to buy-to-let mortgages as a limited company can translate to higher borrowing capabilities with more lenient stress tests, albeit sometimes at slightly higher rates than individual applications.   **A Boon for Portfolio Owners** Limited companies can deliver more attractive tax rates for landlords with extensive property portfolios and a higher tax bracket. Profits can be retained within the corporate structure, allowing for tax-efficient portfolio growth and reinvestment.   **A Growing Trend** Data from Paragon Bank underscores this shift in strategy. The average number of properties held within a limited structure surged from 7.8 in late 2021 to 12.3 in the second quarter of 2023, indicating that landlords are increasingly capitalising on this advantageous setup.   **The Alternative Costs** Yet, it's essential to weigh the costs. Drawing profits from your company for personal use incurs additional taxation. If a property sale is on the horizon, there's no capital gains tax allowance, triggering a 19% minimum corporation tax rate. Added administration responsibilities also come into play, with financial records and accounts to manage. Operating within a limited company structure is a strategic long game—ideal for landlords with substantial portfolios or those keen on reinvestment. However, the path may prove more time-intensive and costly for those with just one or two properties than anticipated. Unlock the power of a limited company for your property investments! Topics: [UK Property](https://blog.magnateassets.com/tag/uk-property), [Real Estate Market](https://blog.magnateassets.com/tag/real-estate-market), [Prices](https://blog.magnateassets.com/tag/prices), [Regulations](https://blog.magnateassets.com/tag/regulations), [Investment Strategies](https://blog.magnateassets.com/tag/investment-strategies), [Overseas Investors](https://blog.magnateassets.com/tag/overseas-investors), [Yield](https://blog.magnateassets.com/tag/yield), [Return on Investment](https://blog.magnateassets.com/tag/return-on-investment) ![Keith Egan](https://blog.magnateassets.com/hubfs/image.png) Written by [Connect on LinkedIn ↗](https://www.linkedin.com/in/keith-egan-a4585613a/) [Keith Egan](https://blog.magnateassets.com/author/keith-egan) Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital. - #### Share: - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.magnateassets.com/unlocking-profit-potential-how-uk-property-investors-leverage-company-structures) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/twitter-sign.svg)](https://twitter.com/share?text=Unlocking%20Profit%20Potential:%20How%20UK%20Property%20Investors%20Leverage%20Company%20Structures&url=https://blog.magnateassets.com/unlocking-profit-potential-how-uk-property-investors-leverage-company-structures&hashtags=weareawesome&via=bluleadz) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.magnateassets.com/unlocking-profit-potential-how-uk-property-investors-leverage-company-structures) [Back to Blog](https://blog.magnateassets.com) ### Popular Blogs \[UK Property, Real Estate Market, Prices, Regulations, Investment Strategies, Overseas Investors, Yield, Return on Investment\] - 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