Should I incorporate my BTL portfolio?
A directional comparison of personal versus limited company holding. We work out the ongoing tax difference, factor an approximate SDLT cost on transfer, and tell you whether the case is strong, marginal, or not worth pursuing.
Enter your portfolio numbers and we will compare personal versus company holding, including approximate SDLT on transfer.
- · Corporation tax at the small profits rate (19%). Profits above £50,000 attract marginal relief, and above £250,000 the full 25% rate. Most BTL companies sit below £50,000 of annual profit.
- · Dividend tax at 8.75% (basic), 33.75% (higher) or 39.35% (additional) on drawn profits. The £500 dividend allowance is ignored as small.
- · SDLT estimated at 5% of portfolio value as a working figure. The actual SDLT depends on per-property values, the 3% additional-property surcharge, and any Multiple Dwellings Relief that may still apply on bulk transfers. The number is directional only.
- · No CGT charge on transfer. This assumes Section 162 incorporation relief applies (defers CGT). If it does not, expect substantial CGT on transfer at 24% on the portfolio gain. This is one of the two questions that need answering before any incorporation goes ahead.
- · No conveyancing, lender arrangement, or refinance fees included. Budget another £3,000 to £8,000 depending on portfolio size.
This tool gives a directional answer in three minutes. Our paid comparison takes the same inputs plus your acquisition history, mortgage rates, lender constraints, and draw plan, and produces a five and ten-year model that stands up to lender and HMRC scrutiny. See the comparison service →
Worth a proper look?
Tell us your portfolio shape in 60 seconds. We will come back within one working hour with a view on whether the £450 comparison is worth running.