Should You Transfer Your Property to a Limited Company?A Practical Guide for UK Landlords
For UK property owners, transferring a rental property from personal ownership into a limited company can offer long-term tax advantages—but the process is complex and comes with potential pitfalls.
At Crypto Tax Accountants, we regularly advise landlords considering this move. This guide explores the main tax implications and strategies to help you make an informed decision.
✅ Why Transfer Property to a Limited Company?
Many landlords opt to operate through a limited company to:
Access lower corporation tax rates (19–25%)
Reinvest profits more efficiently
Mitigate personal tax on rental income (Can be as high as 45%)
Improve long-term estate planning
But the path to incorporation comes with costs, especially around Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT).
📍 Key Tax Implications When Transferring Property
1. Stamp Duty Land Tax (SDLT)
Even if you gift the property to your company for no money, SDLT is still payable on the market value of the property. This applies whether you’re selling it or gifting it.
Mortgage Consideration: If your property has a mortgage, the mortgage balance becomes the ‘consideration’ and triggers SDLT—even if no cash changes hands.
SDLT Rates:
Standard rates
Additional 3% rate for additional properties
2% surcharge if you're non-UK resident
2. Capital Gains Tax (CGT)
CGT is triggered by the market value at the time of transfer, regardless of whether money changes hands.
💡 Example: You bought a buy-to-let for £200,000 and it's now worth £500,000. The £300,000 gain is taxable—even if you gift it to your company.
Rates: 18% or 24%, depending on your income bracket
3. Incorporation Relief – A Smart Way to Reduce Tax
One strategy to defer both SDLT and CGT is to claim Incorporation Relief—but it only applies if:
✅ You run a genuine property business, not passive property investments
✅ You dedicate 20+ hours per week to active management (e.g., repairs, tenant queries)
✅ Your portfolio typically includes 5+ properties
When structured correctly, incorporation relief defers both CGT and SDLT, meaning you don’t pay tax at the point of transfer—only when the company sells the property or its shares.
How to Transfer Property to Your Limited Company
Whether you’re selling, gifting, or incorporating via partnership, the process broadly follows these steps:
Get a Market Valuation – A formal valuation is needed for both HMRC and SDLT purposes.
Instruct a Solicitor – Legal contracts must reflect the transfer, whether sale, gift or partnership incorporation.
Issue Shares – You’ll receive shares in the company equal to the property’s market value.
Notify HMRC & Land Registry – Your solicitor will handle official notifications and SDLT declarations.
Claim Relief – Work with your accountant to apply for Incorporation Relief if eligible.
If your interested in moving your properties into a Limited company get in touch by booking a free call below:
Book a Free Consultation to explore your options with our expert team.
