How to Set Up a Limited Company for a Property Business

How to Set Up a Limited Company for Property Investment - for Free

Discover how incorporating as a UK Limited Company can optimize your property investments, navigating through tax implications like the Section 24 mortgage interest relief cap for landlords. Stay ahead in the property market with expert advice on managing property tax obligations, including insights into navigating the Section 24 mortgage interest relief cap for UK Limited Company landlords. Unlock the potential of your buy-to-let ventures by understanding how UK Limited Company structures can mitigate property tax challenges such as the Section 24 mortgage interest relief cap for landlords.

At Optimise we are in a unique position to provide a specialist service to buy-to-let landlords setting up a limited company. We are starting up a UK Family Investment Limited Company (FIC) / SMART structure with freezer shares and growth shares for free if landlords come on board with Optimise Accountants.

The FIC / SMART property tax structure can be set up with one of our tax advisors. This fee includes a 60-minute tax consultation to discuss your:

– Current tax structure for your property portfolio

– Future Investment Plans

– Who in your family is to benefit from the buy to let property & business investments structure

We will also cover vital information such as:

– The pros of creating one online

– The cons of using one

– What are ordinary shares, and what is meant by freezer and growth shares

– How to extract money from your property investments

– How to minimise Inheritance Tax by passing the limited company wealth on you your children.

We will show you how to set up a limited company in the right way for anyone starting a property business.

What are the basics of using a Limited Company for a buy to let property business?

As accountancy specialists in property and tax serving thousands of UK landlords who purchase buy-to-let properties, we know choosing the right tax structure is essential for our clients. A property investment company should be set up with care.

In the UK, all Limited Companies must be registered at Companies House, and the information about Limited Companies is available on a public register for anyone to see when they are set up.

No restrictions exist on who may use a property investment business structure and you can set up an limited company today if you wanted, but we advise against setting up a company without taking specialist buy-to-let property tax advice first.

Using a limited company will require you to pay tax to HMRC.

Use our free online corporation tax calculator to see how much you need to pay to HMRC as a UK limited Co-owner.

If you are looking for a dedicated monthly accountancy service by fully qualified tax specialists or have any other questions regarding tax or property investment and are not sure what to do next on the rules, pitfalls and advantages, please request a call back using the form below.


Starting up a LTD co online - should you do it?

It is possible to buy a limited company online. The question is this: “Should you set up a SPV online?” It is possible to create companies online, and they are cheap. The issue is that they do not create Family Investment Companies (FICs) or SMART structures.

Using an online portal when starting your business will give you ordinary shares. This means there is no flexibility in how you extract cash out of a limited company. One formed online does not protect you from Inheritance Tax (IHT) because they do not allow you to create freezer or growth shares.

By all means, use the online cheaper priced alternatives but the cost of getting it wrong when it comes to the tax due to HMRC could be substantial.

Setting up a limited company for buy to let property investment has many tax advantages for landlord property investors.

Knowing how to set one up in the right way is crucially important for property investment and our qualified and experienced team at Optimise are here to help you.


What is the best business structure for a property business in the UK?

We get asked regularly "Do I buy in my name or set up a limited company?" And the answer is as often the case with tax questions, "it depends". Decisions should be based on your goals.
Are you looking for a passive income from a diverse portfolio? Perhaps you want to add value to one property to sell for profit to invest in the next? Or you may want to invest personal savings into property to provide a pension for retirement.

What are the key advantages of a limited company for buy to let property investing?

Establishing a Limited Company for investment offers several benefits, such as potential tax efficiency through corporation tax rates, the ability to claim more expenses, and limited liability that protects your personal assets from debts.

What are the initial steps to take when setting up a limited company to purchase buy to let property?

First, you'll need to choose a unique name and register it with Companies House. Next, a bank account specifically for the LTD. You'll also need to appoint directors and possibly shareholders and ensure you understand your reporting and tax obligations, including filing annual returns and accounts.

Are there any particular regulatory requirements for a LTD focusing on investment?

While there are no specific regulations exclusive to investment companies, you'll need to adhere to standard law, which includes maintaining accurate records and accounts. Property-specific regulations, like landlord licensing and safety certificates, will also apply.

Can I live in a house owned by my limited company?

While it's technically possible to live in a property owned by your limited company, it's typically not recommended for several issues surrounding tax, assets, market values and company accountability.

Do I need to set up a limited company for my Airbnb rental?

With so many tax rules applying to property, including Airbnbs, it is essential to speak to a specialist team who have expertise in wealth accumulation while maintaining tax efficiency.

Use a UK limited company if you invest in buy-to-let properties. Free property investment limited company set up with freezer shares and growth shares. SMART companies can save landlords thousands of pounds in tax

Book a call to see how we can help you.


Consultation options.

We offer the two following options for initial consultations.


Our Ongoing Accountancy Services

We charge on a fixed monthly fee

  • - Accounts submitted to HMRC & Companies House

  • - Tax support when needed (no extra charge)

  • - An holistic review of your tax structure and future plans

  • - Annual tax return review to discuss future tax plans


Tax Call + Report + Video Recording

Want tax advice right now? Book today

  • - Upload your questions in advance

  • - A qualified tax advisors discuss the very best solution with you

  • - A tax report & meeting recording is sent within 48 hours

  • - Clarification questions are answered via email

Booking your appointment.