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@ribstonpip are there any tax advantages in buying the buy to let property in a company name?

Published: 22nd February, 2017

Whether there are benefits will depend on the levels of profit in the rental business.
While the headline tax rates are pretty similar (20% basic rate income tax as against a corporation tax rate of currently 20% but going down eventually to 17%) there are some differences in terms of allowable expenses.
The most important one is the loss of tax relief on mortgage interest for higher rate income tax payers. This does not apply to limited companies, so if you have a number of properties with large mortgages and have other income which makes you a 40% taxpayer it may be advantageous to use a company.
On sale of the property, a limited company pays tax on the gain at the corporation tax rate rather than at the capital gains tax rate of 18% or 28%.
Limited companies do however have additional compliance costs to them which could wipe out your tax savings. Advice based on your specific personal cirsumstances would be needed.