| Value £ | Rent £/month | Mortgage £ | Rate % | Bought for £ |
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Filled with five example properties. Replace them with your own.
What this calculator does
It compares keeping your buy-to-lets in your own name with holding them in a limited company, on three measures that matter to portfolio landlords:
- Tax: income tax under Section 24 against corporation tax on the same profit. Extracting profit from a company is taxed again as salary or dividends and isn't included.
- Borrowing power: lenders usually test higher-rate personal borrowers at 145% interest cover and companies at 125%, both capped at 75% LTV across the portfolio. The difference is what a company could borrow on the same rent.
- Cost of moving: stamp duty at residential rates with the 5% surcharge, or non-residential rates where six or more dwellings move together; capital gains tax at 24% on the gains before any relief; and early repayment charges.
It doesn't cover incorporation relief, partnership relief, dividend or salary planning, the 17% SDLT rate some company purchases over £500,000 attract without relief, or Scottish and Welsh property taxes. Treat it as a first look, then see incorporating a property portfolio and speak to an accountant.
Frequently asked questions
How much more can a limited company borrow?
On the same rent, typically around 16% more, because lenders usually test companies at 125% interest cover against 145% for higher-rate personal borrowers. The 75% LTV cap still applies.
What does it cost to move a portfolio into a company?
Usually stamp duty (with the 5% surcharge, or non-residential rates for 6+ dwellings bought together), capital gains tax on any gains unless a relief applies, early repayment charges, and legal and valuation fees.
Is the tax saving guaranteed?
No. The calculator compares income tax with corporation tax on retained profits. If you need to draw the income, extraction taxes reduce the saving. Your accountant should model it in full.