Should You Buy Through a Ltd Company or Personally? The Real Answer.
It’s one of the most common questions we hear from both new and experienced investors:
“Should I buy this property through a limited company or in my personal name?”
And while it would be convenient to have a simple answer, there isn’t one.
The right decision depends on your current situation, your long-term goals, and the kind of portfolio you want to build.
What we can do is break down the core factors that determine the best structure for your strategy.
1. Your Personal Tax Position
Higher-rate taxpayers often lean towards limited companies because mortgage interest can still be fully offset as a business expense — unlike personal ownership post–Section 24.
But for lower-rate taxpayers or those buying their first property, personal ownership may still be more efficient.
The right choice is dictated by your tax band, income mix, and long-term earnings trajectory.
2. Your Long-Term Portfolio Strategy
Different structures support different goals:
Long-term hold portfolios often benefit from Ltd company ownership for tax efficiency.
Small personal portfolios may be simpler in your own name.
Investors planning to scale generally favour corporate structures from the start.
If you know where you want to end up, choosing the right structure becomes much simpler.
3. Mortgage Access & Lender Preferences
The lending landscape has shifted.
Ltd company mortgages are now more competitive, widely available, and often easier to qualify for than before.
But not all lenders lend to all structures.
Rates, fees, and stress tests differ significantly.
This should never be an afterthought — the structure affects the finance, and the finance affects the viability.
4. Exit Plans: Hold, Refinance or Dispose?
Your exit strategy should heavily influence your structure.
Consider:
Will you refinance in a few years?
Will you sell individual units or the entire company?
Do you want to pass properties to family later?
It’s not just about buying right — it’s about leaving in a tax-efficient way.
5. Exposure to Section 24
Section 24 eliminated mortgage interest relief for personally owned residential property.
For many investors, this single policy change is what pushed them toward corporate ownership.
If your portfolio is mortgage-heavy, this factor can dramatically affect your net returns.
6. Inheritance, Succession & Long-Term Planning
Corporate structures offer flexibility for:
Gifting shares
Structuring ownership
Estate planning
Multi-investor arrangements
Personal ownership can make these processes more rigid and more expensive.
The Real Goal
A well-chosen structure can save tens of thousands in tax, fees, and long-term exposure.
A poorly chosen one can lock you into higher costs before you’ve even collected your first month’s rent.
The goal isn’t just:
Buy the property.
The goal is:
Buy it in a way that supports the next 10–20 years of your strategy.
Property isn’t a one-year investment. Your structure shouldn’t be either. If you are unsure how to approach this book your consultation today with O Johnston & Co, all this is considering when we source your next deal.
