Buy-to-Let: Personal Name vs SPV Limited Company – Which Structure Could Work Better for Your Portfolio?

Thinking about building a Buy-to-Let portfolio? How you own your properties can have a significant impact on your tax position, cash flow and ability to reinvest into future purchases.

For higher-rate taxpayers, owning BTL properties personally means mortgage interest cannot be deducted from rental income when calculating taxable profit. By contrast, a qualifying property investment company can generally deduct mortgage interest as an allowable expense, with profits then subject to Corporation Tax.

In this example, we compare the numbers for a £400,000 BTL portfolio with £300,000 of borrowing and £48,000 annual rental income, illustrating how the two ownership structures can produce very different outcomes.

This poster breaks down the figures, key tax considerations and some of the pros and cons of personal ownership versus an SPV limited company, particularly relevant if your objective is to build a larger property portfolio and retain profits for reinvestment.

The right structure depends on your individual circumstances, investment strategy and long-term objectives.

For discussion and illustrative purposes only. Tax treatment can change and this example does not constitute tax, accounting or mortgage advice. Always seek professional advice before deciding how to structure your property investments. #BuyToLet #PropertyInvestment #LandlordUK #PropertyPortfolio #LimitedCompanyBTL