Landlords
Property Incorporation
Expert advice on incorporating your buy-to-let portfolio
Overview
Incorporating your buy-to-let properties can offer significant tax advantages: mortgage interest relief restoration, CGT deferral, and improved succession planning.
But incorporation decisions are complex, with stamp duty implications, SDLT exposure, and reorganization reliefs to navigate. We advise landlords on whether incorporation makes sense for their situation and, if so, structure it optimally.
Key Areas Covered
What we cover as part of this service.
- Section 162 TCGA incorporation relief (CGT deferral)
- SDLT implications and sum of lower proportions relief
- Mortgage refinancing and lender approval
- Financing restructuring (debt vs. equity)
- Ongoing tax position post-incorporation
- Principal private residence relief (if applicable)
- Succession planning benefits
- Potential disadvantages and considerations
Common Issues We Solve
Problems we see regularly — and how we fix them.
Incorporation Fear
Many landlords fear incorporation will trigger large CGT bills. Incorporation relief (s162) can often defer this. We explain the mechanics and your options.
SDLT Confusion
Transferring property via deed triggers SDLT potentially. Sum of lower proportions relief can reduce this. We calculate your exposure precisely.
Missed Planning
Incorporation decisions have long-term consequences. Without proper advice, you may miss financing structures or relief opportunities that would improve your outcome.
Pricing for This Service
Clear fees. Fixed fee confirmed in writing before we begin.
Private Clients
£700
Best for: Portfolio incorporation planning and implementation advice
Get Your Fixed QuoteIncorporation is complex; bespoke advice provided.
Frequently Asked Questions
It defers capital gains tax when incorporating a property business. Rather than triggering CGT on transfer, the gain is deferred until the company shares are eventually sold. Provides significant deferral potential.
SDLT is calculated on the mortgage debt you're moving (using the sum of lower proportions rule) or market value if no debt. Relief is often available. We calculate your exact exposure.
Benefits can outweigh costs: ongoing mortgage interest relief (currently restricted for individuals), easier succession/inheritance planning, corporate liability protection, potential future refinancing benefits. We assess if benefits justify costs for you.
Most lenders will refinance post-incorporation, but approval isn't guaranteed. We advise on lender considerations before proceeding.
Incorporation planning takes 4-8 weeks typically. We manage the timeline with your lender, accountant, and solicitor.
Why Choose UA Tax
Relief Expertise
We maximise s162 relief and SDLT relief planning.
Holistic Analysis
We assess whether incorporation makes sense for YOUR situation. Not everyone should incorporate.
Implementation
We coordinate with your accountant and solicitor to execute smoothly.
Client success story
Portfolio Incorporation - Section 162 Relief
Situation
Landlord with 4 buy-to-let properties, total portfolio value £1.8M, unrealised gains approximately £300k. Mortgage interest relief restriction costing £6k annually.
Challenge
Wanted to improve cash flow and succession planning but feared large CGT bill on transfer. Worried about SDLT costs.
Solution
Structured property transfer as incorporation under s162 relief, deferring the £300k gain indefinitely. Used sum of lower proportions relief to minimise SDLT to approximately £8k. Refinanced mortgage post-incorporation with new lender.
Outcome
Deferred £300k gain indefinitely (no immediate tax). Eliminated annual interest relief restriction (save £6k/year). Improved succession planning (shares easier to pass than properties). SDLT cost recovered through 2 years of interest relief savings. Cleaner entity structure for future expansion or exit.
Ready to discuss property incorporation?
Book a consultation and we will confirm what you need and provide a fixed fee quote.