Moving your rental portfolio into a limited company

Moving your rental portfolio into a limited company

1. 1

   Would a company actually save you tax?

   Often yesHigher-rate taxpayer, big mortgages (Section 24), profits left in the company to reinvest.

   Often noBasic-rate taxpayer who needs the income, little mortgage debt — dividend tax can wipe out the saving.
2. 2

   Move existing properties, or just buy new ones in a company?

   New ones onlyNo transfer tax on what you already own. Many landlords do this.

   Move existing onesTreated as a sale at market value — see the tax below.
3. 3

   Work out the transfer tax

   CGT on the gain (18% / 24%) and stamp duty on market value with the 5% surcharge. Multiple Dwellings Relief has gone.

   ⏱ CGT: report and pay within 60 days

4. 4

   Do any reliefs fit?

   Incorporation relief (s162)Defers CGT only for a genuine letting business (around 20+ hours a week of your work) transferred whole for shares. Must be claimed.

   Partnership stamp duty reliefOnly for a genuine existing partnership — not just joint owners, and not one set up just before.

   Marketed schemesHMRC says "hybrid LLP" style schemes don't work (Spotlights 63, 63A, 69). Avoid.
5. 5

   Sort the mortgages

   The company needs its own lending, usually with personal guarantees. Check early repayment charges. Lender consent before anything moves.

6. 6

   Set up the company and transfer

   Company with a property SIC code, conveyancing for each property, tenants told of the new landlord, deposits re-registered.

7. 7

   Ongoing

   Annual accounts, confirmation statement and corporation tax return. ATED return each year for properties over £500,000.

   ⏱ Every year

8. ✓

   Decide with real numbers

   Ask Wala to explain it, then get a property tax specialist to model it before you commit.

Checked against official sources on 2 November 2026 · General information, not legal advice · landlordwala.com/diagrams/portfolio-limited-company