Jump to content

Invest as individual or limited company?

Recommended Posts

Hi all, 

Looking for some advice! Completely lost and have a long term (almost terminal) case of analysis paralysis!

Mortgage on a flat valued at £215k. £66k left to pay on the mortgage. £30k in savings.
We'd like to move up the ladder to a house, but keep the flat as a long term investment. 

Move the flat to a LTB, buy a house with our savings and the equity released from the flat. 
As individuals our mortgage in principle figure is £261k.
The max we can release from the flat is £161k.

We are trying to understand what is the most tax efficient option, convert the LTB as a company or as individuals? 

Is the above even achievable?! 

Thank you in advance!


Link to post

Hi @Goose,

Your accountant will be able to best advise you on the tax benefits of purchasing property through a limited entity. Higher rate and additional rate tax payers generally prefer this route. 

If your new Ltd Co. (SPV) purchased the flat you would be liable for 3% additional stamp duty and other costs, mortgage & valuation fees, conveyancing. The rates would be higher too most likely than Let to Buy (LTB) terms. 

Purely from a mortgage perspective the most cost efficient way is the one you’ve already mentioned. (Though worth checking standard BTL products against LTB rates)

All the Best



Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...