Five years ago the maths was awkward: limited-company buy-to-let rates carried a hefty premium over personal deals, and for many landlords the tax savings never caught up with the extra interest. In 2026 that premium has narrowed to the point where the old rule of thumb — "incorporation is only for big portfolios" — deserves retirement.
What changed
Three things. First, competition: the number of lenders actively courting SPV borrowers has grown every year, and pricing has compressed accordingly. Second, Section 24 has now fully worked through landlords' tax returns for long enough that higher-rate taxpayers can see precisely what mortgage interest relief restriction costs them annually in personal name. Third, lenders' stress tests treat company borrowers more generously in many cases, because corporation tax rates change the interest coverage arithmetic.
The honest break-even test
Incorporation still is not free. Moving existing properties into a company is a disposal: stamp duty and possibly capital gains tax apply, and the company remortgages at company pricing. The break-even question is simply whether the annual tax saving multiplied by your holding horizon exceeds those one-off costs plus any residual rate premium.
- Higher-rate taxpayer, planning to hold 10+ years, reinvesting profits into more property: the company route usually wins, often decisively.
- Basic-rate taxpayer with one or two properties and no growth plans: personal name frequently remains the better answer.
- Buying the next property? The calculus is different again — no transfer costs apply, so the company wrapper is cheap to choose from day one.
What we do differently
We model both routes with live lender pricing before you commit, and we coordinate with your accountant so the tax assumptions are real, not folklore. If the personal route wins on your numbers, we will tell you so — the recommendation has to survive contact with your spreadsheet.
Thinking about your structure for the next purchase? A short conversation now can save an expensive restructuring later.