Number of buy-to-let companies steadily growing

A recent survey by Hamptons found that buy-to let landlords are increasingly moving their portfolios into a limited company structure. This trend is largely attributed to the 2016 legislation (section 24) that restricted the tax relief for dwelling-related loan costs available to individual landlords.

Companies House now has more registered buy-to-let companies than any other type of business. The number of companies holding buy-to-let property in the UK has increased by 332% over the past nine years.

Holding buy-to-let property in a limited company can have tax advantages but there are also extra costs involved. When it comes to operating a buy-to-let property business there is no ‘one-size-fits-all’ approach and deciding on the best business structure should be addressed on a case-by-case basis.