How do you transfer property to a limited company?
To transfer property to a limited company, the company buys the property from you at its market value, even if it pays you little or nothing. That counts as a sale for Capital Gains Tax and a purchase for Stamp Duty Land Tax, so plan the cost before you transfer. This guide sets out the steps, the taxes and the reliefs for 2026/27.
The steps, in order
- Work out the cost first. Get valuations and calculate Capital Gains Tax and Stamp Duty on each property (see the table below).
- Check whether incorporation relief applies. It can defer the Capital Gains Tax if your letting is a business and you transfer all of it for shares.
- Speak to a mortgage broker. The company usually needs a new limited company mortgage; check early repayment charges on your current loans.
- Set up the company with the right share structure, if you do not already have one.
- Instruct a solicitor to transfer the legal title and register it with HM Land Registry.
- File and pay Stamp Duty within 14 days of completion.
- Report the disposal. Pay any Capital Gains Tax due within 60 days of completion, or claim incorporation relief on your tax return.
What does it cost to transfer property to a limited company?
The two big costs are Capital Gains Tax on any rise in value since you bought, and Stamp Duty for the company on the full market value. Both are based on market value because you and your company are connected (TCGA 1992 s.18; FA 2003 s.53).
This table lists the costs for a transfer in 2026/27. Stamp Duty figures apply in England and Northern Ireland.
| Cost | How it is worked out | Can it be reduced? |
|---|---|---|
| Capital Gains Tax | 18% or 24% on the gain over your original cost, after the £3,000 annual exempt amount | Deferred by incorporation relief if the conditions are met and you claim it |
| Stamp Duty Land Tax (company buyer) | Residential rates plus the 5% surcharge; 17% on a dwelling over £500,000 unless a relief such as the property rental business relief applies | Partnership relief for a genuine partnership; six or more dwellings in one transaction can use non-residential rates |
| Mortgage costs | Early repayment charges, arrangement fees and often a higher rate on company mortgages | Time the move around fixed-rate end dates |
| Legal and valuation fees | Conveyancing for each property and RICS valuations | No |
| Ongoing company costs | Company accounts, corporation tax return, confirmation statement; ATED return for any dwelling over £500,000 | No |
Worked example: one buy-to-let, no incorporation relief
Assumptions: one property in England bought for £180,000, now worth £300,000, transferred on its own in 2026/27 by a higher-rate taxpayer whose letting is not a business.
| Item | Amount |
|---|---|
| Gain (£300,000 − £180,000) | £120,000 |
| Less annual exempt amount | (£3,000) |
| Capital Gains Tax at 24% | £28,080 |
| Stamp Duty: 5% on £125,000 + 7% on £125,000 + 10% on £50,000 | £20,000 |
| Tax before legal and mortgage costs | £48,080 |
Sources: GOV.UK CGT rates; GOV.UK SDLT rates; GOV.UK SDLT for companies.
Can you transfer property to a limited company without paying tax?
You can defer Capital Gains Tax with incorporation relief, and some genuine partnerships can reduce Stamp Duty, but there is no route that removes both taxes in every case. This table compares the main routes.
| Route | Capital Gains Tax | Stamp Duty | Points to watch |
|---|---|---|---|
| Sell or gift the property to the company | Due on the gain at market value | Due on market value | Simplest, but usually the most expensive |
| Transfer the whole letting business for shares (incorporation relief) | Deferred into the shares if you claim the relief | Still due | The letting must be a business, and every business asset except cash must transfer |
| Transfer from an established partnership | Incorporation relief may apply | Partnership relief may reduce it (FA 2003 Sch 15) | Joint ownership alone is not a partnership; HMRC challenges arrangements set up just to save tax |
| Keep existing properties and buy new ones in a company | None on existing properties | Only on new purchases | Often the lowest-cost option |
More detail: incorporating a property partnership.
How do you take money out of a property company?
Profit kept in the company is taxed at corporation tax rates, but you pay tax again when you take it out as dividends or salary. This table shows the 2026/27 rates (GOV.UK corporation tax; GOV.UK dividend tax).
| Tax | Rate (2026/27) | Notes |
|---|---|---|
| Corporation tax on profit | 19% up to £50,000; 25% over £250,000; marginal relief in between | Limits are shared if you have associated companies |
| Dividend tax | 10.75% (basic rate), 35.75% (higher rate), 39.35% (additional rate) | First £500 of dividends tax-free (dividend allowance) |
| Salary | Income tax and National Insurance through PAYE | A deductible cost for the company |
Rates rose from 6 April 2026 (Finance Act 2026 s.4), so the saving from a company is smaller if you need to take all the profit out. See taking money from a property company.
What is section 162 incorporation relief?
Section 162 incorporation relief defers Capital Gains Tax when you transfer a business to a company in exchange for shares. The gain is deducted from the base cost of the shares, so the tax can arise later when you sell the shares (TCGA 1992 s.162).
Conditions
- Your letting must be a business. HMRC accepts this where you personally spend 20 hours or more a week on it, following the Ramsay case (HMRC CG65715).
- The business must transfer as a going concern with all its assets, except cash.
- You must receive shares. Any cash or loan account is taxed in proportion.
- For transfers on or after 6 April 2026 you must claim the relief by the first anniversary of the 31 January after the tax year of transfer (Finance Act 2026 s.39).
| Date of transfer | How the relief works |
|---|---|
| Before 6 April 2026 | Automatic, with an election to switch it off (s.162A) |
| On or after 6 April 2026 | Must be claimed; the election to switch it off is repealed |
Incorporation relief does not reduce Stamp Duty.
What are the disadvantages of transferring property to a limited company?
The main disadvantages are the upfront tax, higher borrowing costs and paying tax twice when you take profit out. Weigh these against the yearly saving before you transfer.
- Upfront tax: Stamp Duty is almost always due, and Capital Gains Tax too unless incorporation relief applies.
- Mortgages: company mortgages often cost more, and early repayment charges can be large.
- Extraction tax: dividends are taxed at up to 39.35% on top of corporation tax.
- Selling later: the company pays corporation tax on gains, then you pay tax again to take the money out.
- Running costs: accounts, returns and possibly ATED every year.
- Inheritance tax: no Business Relief for a company that holds rental property.
Are limited companies exempt from inheritance tax?
No. Shares in a company that mainly lets property are part of your estate and do not qualify for Business Relief, because the company holds investments rather than running a trade (HMRC IHTM25261).
| Property owned personally | Property owned by your company | |
|---|---|---|
| What is in your estate | The properties | The shares |
| Business Relief | No | No |
| Planning options | Lifetime gifts and the 7-year rule | Share classes and gifts of shares, which need specialist advice |
Estimate the position with our inheritance tax calculator.
Get advice before you transfer
A transfer is hard to undo, so check the numbers first. Our property incorporation tax advice service compares the day-one cost with the yearly saving and checks whether incorporation relief is available.
Frequently asked questions
Can I transfer my property to my limited company for £1?
You can agree any price, but for tax the transfer is treated as taking place at market value, so Capital Gains Tax and Stamp Duty are still worked out on the full value.
Do I pay Stamp Duty when transferring property to my own company?
Usually yes, on the market value, including the 5% surcharge for companies. Partnership relief can reduce it for some genuine partnerships.
How long do I have to pay Capital Gains Tax after the transfer?
For a UK residential property, report and pay within 60 days of completion, unless incorporation relief means no tax is due now.
Can I transfer just one property using incorporation relief?
No. Incorporation relief needs the whole business, with all its assets except cash, to be transferred.
Is it better to buy new properties in a company instead?
Often it is, because it avoids the transfer costs on properties you already own. Compare both options before deciding.
About this guide
Written and reviewed by Simon Misiewicz FCCA, ATT, MBA, Director, Optimise Accountants. Simon has invested in property since 2006 and leads a team of five ACCA-qualified accountants.
Last reviewed: 3 October 2026. Drafted with AI assistance; every figure checked against GOV.UK, HMRC manuals and legislation.gov.uk, including Finance Act 2026, and reviewed by Simon before publishing.
This guide is general information, not personal advice. Take advice before transferring any property.
Optimise Accountants is the trading name of OPTIMISE ACCOUNTANTS LIMITED, registered in England and Wales, company number 04856185. Registered office: Office 15 Bramley House 2a, Bramley Road, Long Eaton, Nottinghamshire NG10 3SX.
