Landlords set up limited companies in record numbers
Hamptons research expert says the vast majority of landlord purchases are now done through a limited company structure to avoid 'aggressive tax environment'.
Landlords are opting to set up buy-to-let companies in record numbers as they race to benefit from better tax rates, says Hamptons.
Limited companies help investors to make their buy-to-let businesses more profitable.
Properties sold by companies are not subject to Capital Gains Tax, which is a hot topic at present with speculation that Chancellor Rachel Reeves may raise CGT in this month’s Budget.
Vast majority
And the rising number of companies set up to hold buy-to-let properties means the vast majority of new landlord purchases now go into a limited company.
So far this year, 70% of new buy-to-let purchases in England & Wales were made using a limited company, with the remaining 30% being bought in personal names.
Last month saw 5,312 new limited companies set up to hold buy-to-let property across Great Britain.
Exceed last year
By the end of 2024, between 60,000 and 62,000 limited companies will have been created, exceeding last year’s total of 50,004.
Nearly 60% of these new companies have been set up in the South of England.
Most new purchases are now made in a company structure.”
Aneisha Beveridge (main pic), Head of Research at Hamptons, says: “Most new purchases are now made in a company structure.
“However, there’s also been a significant rise in the number of landlords moving homes they own in their personal name into a company to shelter from an increasingly aggressive tax environment.”
Buy-to-let companies boom as mortgage rates bite