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Part of Accotax, an ICAEW regulated firm. Offices in Morden, Croydon, Chelsea and Mitcham.

0203 4411 258[email protected]

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Accountants for property companies and landlords

Holding property in a company changes how mortgage interest, gains and profit extraction are taxed. We structure it properly from the start.

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  • Year-end accounts
  • Corporation Tax returns
  • Tax planning for directors

What does an accountant do for property companies and landlords?

Property company accountants prepare accounts and Corporation Tax for SPVs and portfolio companies, track mortgage interest, handle stamp duty and advise on the incorporation of existing properties. Fees depend on the number of properties.

What is different for you.

The parts of the rules that matter most for this kind of company.

01

Section 24 finance costs

Companies deduct mortgage interest in full; individuals do not. This is a major reason investors use SPVs.

02

Incorporating existing properties

Transferring properties can trigger capital gains tax and stamp duty.

03

Taking money out

Dividends, salary and director loans are taxed differently.

How the work differs for property companies and landlords.

The parts of the job that matter most for this kind of company, and how we handle them.

01

Personal name or a property company

Owning rental property personally means rental profit is taxed at your income tax rates, with mortgage interest relief limited to a 20% credit. Owning through a company means Corporation Tax on profit with mortgage interest deducted in full, but with other costs, including higher stamp duty and the tax on taking money out.

Which is better depends on your income, borrowing, plans and portfolio size. We model both before you decide.

  • Personal and company ownership compared
  • Mortgage interest treatment
  • Extraction of profit modelled
02

Moving existing property into a company

Transferring property you already own into a company is treated as a sale at market value. That can create Capital Gains Tax and Stamp Duty Land Tax at the point of transfer, so it often costs more than it saves. Relief is available in limited cases for a genuine property business, but the conditions are strict.

We check whether it is worth doing and, if so, how to do it properly.

  • Transfer tax cost calculated
  • Incorporation relief tested
  • Alternatives considered
03

Costs, repairs and improvements

Repairs are generally deductible and improvements are not, and the line between them catches many landlords. Letting costs, insurance, agent fees and compliance certificates are allowable. Higher-value properties may bring the Annual Tax on Enveloped Dwellings.

We keep the books by property so the figures stand up and your tax is correct.

  • Repairs and improvements separated
  • Costs recorded by property
  • ATED considered for high-value homes

The usual way, and ours.

Owned personally

  • Income tax at your marginal rate
  • Mortgage interest given as a 20% credit
  • Simple records
  • No company filings

Owned through a company

  • Corporation Tax on profit
  • Mortgage interest deducted in full
  • Higher purchase costs
  • Accounts and returns each year

Rules to watch.

Rule

Companies House filings

SPVs file full accounts; the Corporation Tax return needs property income schedules.

Your year with us.

What happens, and when.

  1. Before buyingStructure chosen and modelled.
  2. MonthlyRent, costs and mortgage payments recorded by property.
  3. Year endAccounts, CT600 and dividend plan.
  4. On saleGain calculated and tax planned.

Mistakes we prevent.

Avoided

Moving properties into a company without costing it

The transfer can trigger tax and stamp duty.

Avoided

Treating improvements as repairs

HMRC separates them, and only repairs reduce taxable rent.

Avoided

Taking money out without a plan

Extracting profit from a property company has its own tax cost.

Services most property companies and landlords use.

Service

Year-end accounts

Statutory accounts and CT600, filed on time for a fixed price.

Service

Corporation Tax returns

CT600 prepared, optimised and filed, with the tax bill planned.

Service

Tax planning for directors

Salary, dividends, pensions and timing planned to legally keep more.

Fixed fees for property companies and landlords.

Prices exclude VAT. Final price depends on turnover and options.

Essential

Micro and new companies

£45.83a month + VAT

  • Statutory accounts
  • Corporation Tax return (CT600)
  • Confirmation statement
  • One director Self Assessment
  • Deadline reminders
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Recommended

Complete

Trading and online businesses

£62.50a month + VAT

  • Everything in Essential
  • Monthly bookkeeping
  • Quarterly MTD VAT returns
  • Director payroll and RTI
  • Quarterly review call
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Growth

Growing, data-led teams

£75a month + VAT

  • Everything in Complete
  • Payroll for up to 5 employees
  • Priority accountant access
  • Quarterly tax planning
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Worth reading.

Article

Buy-to-Let Through a Limited Company: Is an SPV Worth It?

Is buying property through a limited company worth it? Section 24, Corporation Tax, SDLT surcharge, mortgages and the...

Rated 4.9 out of 5.

“He took the time to explain every step of the process and made a complex situation much easier to understand.”
Hugo AlvarezGoogle review of Accotax
“They take the time to understand how our business works and what our needs are.”
Mael LeboucherGoogle review of Accotax
“Very prompt in responding to questions and patient with us even when we seem to be slow.”
Mansur LimanGoogle review of Accotax
“He took care of everything promptly and kept me informed throughout, which was greatly appreciated.”
SofiaGoogle review of Accotax
“It was a pleasure working with Anum on our accounts. The whole process was swift and effortless, and it was one less thing to worry about.”
Jamie FletcherGoogle review of Accotax
“The work was completed promptly, my tax return was successfully filed.”
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Property companies and landlords: questions.

Is it better to hold property in a limited company?

It depends on whether you plan to extract profit or reinvest. Companies suit reinvestment, because profit is taxed at Corporation Tax rates.

Accounts for property companies and landlords, sorted.

Tell us about your company and we will confirm your fixed fee within one working day.

Get a quote WhatsApp us0203 4411 258