If you already own one or more buy to let properties in your personal name, you might be wondering whether transferring them into a limited company could be a smarter move. For many landlords in Coventry, this is a question that comes up – especially when thinking about long-term tax planning and portfolio growth.

The short answer is: yes, it’s possible to transfer your buy to let properties to a limited company, but there are a number of costs and considerations involved.

What happens when you transfer properties to a limited company?

When you move your property from personal ownership to a limited company, it’s treated as a sale and repurchase. This means your company effectively buys the property from you at its current market value. That process triggers:

  • Stamp Duty Land Tax (SDLT): Your limited company will need to pay stamp duty on the full purchase price, including the additional 3% surcharge for second properties.
  • Capital Gains Tax (CGT): As the property is leaving your personal ownership, any gains made since purchase could be taxed under CGT rules.
  • Legal and Valuation Costs: You’ll need to cover legal conveyancing fees, possible valuation fees, and potentially new mortgage arrangement costs.

Why would someone consider doing this?

Despite the upfront costs, there are several reasons why landlords in Coventry are increasingly exploring limited company ownership for their buy to let mortgages:

  • Tax Efficiency: Limited companies are taxed differently, and many of the expenses linked to running a rental portfolio (such as mortgage interest, letting agent fees, and repairs) are tax-deductible.
  • Growth and Flexibility: If you plan to expand your portfolio, it may be easier to manage and grow under a corporate structure.
  • Estate Planning: For some landlords, holding property in a company can support long-term inheritance planning.

Important Considerations Before You Switch

Running a limited company does come with extra responsibilities. You’ll need to file annual accounts, maintain accurate records, and potentially pay corporation tax on profits. There are also fewer mortgage lenders that offer buy to let mortgages to limited companies, which can sometimes affect your rates or loan-to-value options.

If you do decide to make the switch, you’ll likely need a new buy to let mortgage in Coventry, as most personal buy to let loans can’t simply be moved to a company structure. The application process may also differ slightly, especially if this is your first time using a limited company for property.

Specialist Buy to Let Mortgage Advisor in Coventry

This is a specialist area of the mortgage market and isn’t right for everyone. Before making any changes to how you hold your property, it’s important to speak with a mortgage advisor in Coventry who understands both the risks and benefits of limited company ownership.

At Coventrymoneyman, our team can explore your options and provide tailored buy to let mortgage advice in Coventry. We also work with a network of trusted accountants and solicitors who can support you with the wider legal and tax considerations.

Date Last Edited: May 30, 2025