If you are a looking for a limited company buy-to-let mortgage, we can help.

What is particularly appealing about a limited company mortgage for an investment is the variety of tax efficiencies including higher tax relief, as well as being able to shelter profits from personal taxation and include family members in the business.

As specialist brokers, we can, quite uniquely, help you explore the range of lenders who can provide solutions even if you are a newly-formed limited company. We’ll take you through the whole application process, providing support with what can be a complex area.

Things you need to know:

  • Interest rates on limited company mortgages can be higher compared to standard buy-to-let mortgages
  • The same level of Stamp Duty Land Tax will normally apply when purchasing under a limited company compared to personal ownership
  • Finance costs, including mortgages, remain tax-deductible for limited company landlords
  • Limited company landlords pay corporation tax, not income tax, on their rental income. The current rate of corporation tax is 19%
  • Limited company landlords pay corporation tax of 19% on their capital gains and there is no tax-free allowance. Lower and higher rate taxpayers will pay 18% and 28%, respectively
  • Limited company directors usually need personal guarantees

To secure a specialist mortgage for buy-to-let purposes, your limited company will usually be set up as an SPV (Special Purpose Vehicle), which is set up solely for buying, selling and letting of residential property.

The Standard Industrial Classification codes (SIC) that are normally considered are:

  • 68100
  • 68201
  • 68209
  • 68320

Want to know more? Please get in touch, we would be happy to help.

The Financial Conduct Authority does not regulate some forms of Buy to Lets

Ready to talk through your needs?