Cambridge Rental Limited Structures: What They Mean for Landlord Taxation

More Cambridge landlords are transferring properties into limited companies to optimise their tax position and future-proof their portfolios. But the benefits depend heavily on your income, goals, and property strategy.

How Limited Company Ownership Changes Your Tax Liability

Owning property through a limited company means paying Corporation Tax on profits instead of personal Income Tax. For higher-rate taxpayers, this often results in a lower overall tax bill. Mortgage interest is also fully deductible in a company structure, unlike in personal ownership.

Corporation Tax vs. Personal Income Tax: Which Works Better for You?

Corporation Tax in the UK is currently lower than the higher bands of personal Income Tax. However, taking profits from the company as dividends triggers additional tax. The balance between reinvesting profits and drawing income is key to making the numbers work.

Additional Costs and Admin Landlords Should Budget For

Limited companies come with extra responsibilities: annual accounts, Companies House filings, and potentially higher accountancy fees. Some mortgage lenders also have stricter requirements or fewer products for company-owned properties.

When a Limited Structure Makes the Most Sense (Portfolio Size & Goals)

Generally, landlords with three or more properties—or those planning significant portfolio growth—benefit most from a limited structure. It can also help with succession planning and protecting personal assets.

How Cambridge Stays Works With Both Limited and Personal Landlords

Whether you own properties personally or through a limited company, Cambridge Stays provides full-service management. We tailor our approach to your tax and investment strategy, working alongside your accountant to ensure your property performance supports your goals.

Considering a move to a rental limited company? Contact Cambridge Stays for a property structure consultation and a free portfolio performance review.