The property world has changed — and so should the way landlords structure their businesses. Accounting Matters explains why moving your buy-to-let portfolio into a limited company can protect your profits, reduce tax, and future-proof your investments.
Introduction: The Game Has Changed for Landlords
At Accounting Matters, we work with hundreds of landlords across the UK — from single-property investors to those managing entire portfolios. Over the last few years, one message has become crystal clear: the landscape has changed, and the old ways of running a buy-to-let business no longer deliver the same results.
Higher mortgage rates, reduced tax reliefs, tightening regulations, and the full impact of Section 24 have all made it harder to keep profits where they belong — in your pocket.
That’s why more and more landlords are asking us the same question:
“Should I move my property business into a limited company?”
Our answer? In many cases, yes — but only when it’s planned properly. At Accounting Matters, we’ve made it our mission to think through every detail of what this move means, ensuring landlords can benefit from the advantages while avoiding costly surprises.
Why the Old Sole Trader Model Is No Longer Working
For years, landlords could comfortably hold properties in their personal name. The system was simple, tax rules were kinder, and interest costs were fully deductible. Those days are gone.
Since the introduction of Section 24 of the Finance Act, individual landlords can no longer deduct full mortgage interest from rental income. Instead, they receive a basic-rate tax credit of just 20 %.
This means that:
- Many higher-rate taxpayers now pay tax on income that doesn’t actually exist once mortgage costs are considered.
- The effective tax rate for landlords has soared.
- Cash flow is tighter than ever, leaving little room for reinvestment or growth.
In other words — landlords are now being taxed on turnover, not profit.
For landlords who treat their portfolio as a genuine business, this simply doesn’t make sense. And that’s where incorporation comes in.
Why More Landlords Are Incorporating
When your property business grows, you have two options:
- Continue operating as an individual (and face rising personal tax and compliance pressures), or
- Incorporate — creating a separate legal entity for your rental business, giving you more flexibility, protection, and control.
At Accounting Matters, we’ve guided dozens of landlords through this exact process, helping them structure their portfolios through property-holding companies built for the long term.
Here’s what that means in practice.
The Strategic Benefits of Moving to a Limited Company
1️⃣ Lower Tax Rates and Greater Control
Operating as a company means profits are taxed at Corporation Tax rates (currently 19 %–25 %), rather than personal income tax rates (20 %, 40 %, or 45 %).
That’s a substantial saving — and, crucially, the company can retain profits rather than paying them all out immediately. This gives you control over when you draw income and how much tax you pay each year.
We design custom profit-extraction strategies, balancing salary, dividends and retained earnings so you can keep more of your returns without triggering unnecessary tax bills.
👉 Explore Month-9 Tax Planning to see how we forecast and optimise client profits in real time.
2️⃣ Full Mortgage Interest Deductibility
Inside a limited company, mortgage interest is treated as a business expense — fully deductible before calculating taxable profit.
That single rule change can transform your bottom line.
Many landlords who were pushed into higher tax brackets by Section 24 find that incorporation restores the financial balance, making their properties profitable again.
3️⃣ Building for Growth and Reinvestment
Running your property business through a company means you can retain earnings to fund future purchases, refurbishments or debt reduction — without paying immediate personal tax.
We’ve seen clients use this structure to build sustainable, scalable portfolios that grow year after year without draining their cash flow.
This “retain and reinvest” approach is one of the core principles we help landlords adopt, turning small property holdings into structured, tax-efficient businesses.
4️⃣ Clearer Separation and Limited Liability
When your portfolio sits inside a company, your personal and business finances are no longer one and the same.
That separation gives you:
- Protection for personal assets
- Professional credibility with lenders
- A clear financial line for accounting and compliance
While you may still be asked for personal guarantees, your exposure is significantly reduced — and your business presents a far more professional face to brokers and investors.
5️⃣ Easier Succession Planning and Family Involvement
For many landlords, property is a family venture. A company structure makes it much easier to involve spouses, partners, or children by issuing shares or appointing directors.
It also simplifies inheritance planning, allowing ownership to pass through shares rather than complex property transfers.
At Accounting Matters, we work closely with landlords to align incorporation with long-term legacy goals, ensuring tax efficiency today and peace of mind tomorrow.
👉 Learn more about Landlord Incorporation and Structure Planning.
What to Consider Before You Switch
We pride ourselves on giving honest, practical advice — not blanket statements. Incorporation is powerful, but it’s not right for everyone.
Here’s what we help you think through before taking the leap:
🔹 Capital Gains Tax (CGT)
Transferring personally held properties into a company is treated as a sale for tax purposes. You may need to pay CGT on any gain. However, there are reliefs available — especially for landlords running a true property business — and we’ll calculate these for you.
🔹 Stamp Duty Land Tax (SDLT)
Your company will effectively “purchase” your properties, which can trigger SDLT. Again, certain partnership structures may qualify for reliefs — we’ll explore every option.
🔹 Mortgage Considerations
Lenders often require remortgaging into a company structure. Rates may differ slightly, but we work with trusted specialist brokers who understand the BTL market and ensure your finance stays competitive.
🔹 Running Costs and Compliance
A company means more admin — but with us, that’s handled. We manage everything from bookkeeping and payroll to Companies House filing, so the move feels seamless.
👉 Check out our Landlord Accounting Packages for a fully managed service that covers every base.
How Accounting Matters Makes Incorporation Easy
We’ve built a step-by-step process that takes the stress out of restructuring your landlord business:
1️⃣ Strategic Consultation
We start with an in-depth review of your current portfolio, tax position and long-term goals. Using our in-house Month-9 Forecasting Model, we’ll show you what your next year could look like under both structures — sole trader vs company.
2️⃣ Incorporation Setup
Once you’re ready, we handle the entire setup:
- Registering your company and appropriate SIC codes
- Setting up accounting software (Xero & Dext)
- Creating directors’ and shareholders’ documents
- Coordinating with your solicitor and mortgage broker
3️⃣ Financial Modelling & Tax Planning
We run detailed projections for tax, cash flow and extraction options so you can make informed decisions — not guesses.
4️⃣ Ongoing Support and Compliance
After setup, our work continues: monthly or quarterly bookkeeping, corporation tax returns, management accounts, dividend planning and Month-9 Tax Reviews to keep everything on track.
We don’t just get you incorporated — we help you run a better business.
A Real-World Example
One of our clients, a couple with four rental properties in Nottinghamshire, approached us when their tax bill became unmanageable after Section 24. We modelled their portfolio inside a limited company, liaised with their mortgage provider, and restructured ownership.
Within 12 months, they had:
- Reduced their effective tax rate by over 20 %
- Retained profits to fund a fifth property
- Set up share classes to include their children for future inheritance planning
That’s the kind of transformation possible when landlords take a business-minded approach — with the right partner by their side.
Why Choose Accounting Matters?
There’s a reason so many landlords across Derbyshire and beyond trust us.
🟪 We’re Specialists
We don’t treat property accounting as an afterthought — it’s one of our core service areas. Our team keeps up to date with HMRC changes, mortgage-market shifts, and landlord legislation so that our clients stay ahead of the curve.
🟪 We’re Proactive
We don’t wait for the year end. Our Month-9 Tax Planning system gives clients early warning of potential liabilities and opportunities to reduce them.
🟪 We’re Local — and We Care
With offices in Ripley and Chesterfield, we’re not a faceless firm. We know our clients personally, we know the local market, and we believe your accountant should be part of your business journey, not just a number cruncher.
🟪 We Live Our Values
Flexible. Persistent. Positivity. Trust. Team.
These are more than words to us — they define how we work with every landlord we support.
What You Should Do Next
If you’re a landlord wondering whether incorporation could save you tax and strengthen your position — let’s talk.
1️⃣ Book a free discovery meeting – We’ll review your portfolio and goals.
2️⃣ Receive your personalised incorporation analysis – See the real-world impact of switching.
3️⃣ Let us handle the transition – Company formation, software setup, mortgage coordination, and ongoing management — all handled.
👉 Book your free landlord consultation
Conclusion: It’s Time to Think Like a Business
The property world has evolved — and successful landlords are evolving with it.
Running your buy-to-let operation as a limited company is no longer just a tax decision; it’s a strategic move that provides control, protection, and long-term growth potential.
At Accounting Matters, we’ve thought through every angle — from Section 24 relief to SDLT mitigation, corporate structuring, succession planning, and real-time tax forecasting.
We don’t just handle the numbers — we help landlords build businesses that last.
Because at the end of the day, Accounting Does MATTER.
📩 welcome@accountingmatters.co.uk
📞 01773 747990