Structure
Limited company vs personal name
Paul says
Most landlords past their first or second property end up in an SPV — but it isn't automatic. Let me walk you through it.
The structure you buy in changes everything downstream — how mortgage interest is treated for tax, which lenders will look at you, and how complicated your exit becomes.
In personal name, mortgage interest no longer reduces your taxable rental income (since 2020) — you get a 20% tax credit instead. Higher-rate taxpayers usually feel that hit hardest.
A limited company (SPV) lets you fully deduct mortgage interest as a business expense, but you pay corporation tax on profits and personal tax again when you take money out. There are extra costs (accountancy, filings) and slightly higher lender rates.
Most landlords buying their second or third property — and almost everyone buying as a portfolio play — now favour an SPV. Single-property hobbyists may still be fine in personal name. The right answer depends on your tax band, your timescale, and what you want to do with the rent.
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