Limited company guide
How property SPVs work, why landlords use them, the right SIC code, lender expectations, stamp duty and ATED, and when incorporating a portfolio actually pays.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityA special purpose vehicle is an ordinary limited company set up to do one thing, in this case hold property. Lenders use the term to mean a clean company with no trading history and a property SIC code, typically 68209, 68100 or 68320.
What an SPV is
Why landlords incorporate
The cost of getting property in
Running the SPV
A special purpose vehicle is an ordinary limited company set up to do one thing, in this case hold property. Lenders use the term to mean a clean company with no trading history and a property SIC code, typically 68209, 68100 or 68320.
Buy to let lenders price SPV lending separately and many will not lend to a company with mixed trading activity, so the vehicle should not be reused for anything else.
A company deducts mortgage interest in full against rental profit. A personally held residential let only gets a 20% tax reducer, which means a higher rate landlord with significant borrowing is taxed on more than their real profit.
Corporation tax at 19% to 25% also compares well with 40% or 45% income tax where profits are retained to buy more property. The catch is extraction: taking money out as dividends adds a second charge.
Transferring existing personally held property to a company is a disposal at market value for capital gains tax and a purchase for stamp duty, including the 5% additional dwelling surcharge on top of standard rates in England.
Incorporation relief may defer the gain where a genuine property business is transferred as a going concern, and multiple dwellings or partnership routes can affect stamp duty, but these are technical areas where advice pays for itself several times over.
Fund deposits through a properly documented director loan account, which can be repaid later without further tax. Keep lender-ready accounts: FRS 102 Section 1A with a profit and loss account is often better for refinancing than minimal FRS 105 accounts.
Watch ATED if a residential property is worth over £500,000, claim the letting relief on the annual return rather than ignoring it, and remember every extra company divides the corporation tax thresholds further.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Rarely on tax alone, unless you are a higher rate taxpayer with a large mortgage and plan to buy more. The fixed costs of a company and the higher mortgage pricing eat the benefit on a single low-geared property.
Most accept 68209, other letting and operating of own or leased real estate, or 68100 and 68320 depending on activity. Check your lender's list before incorporating, because changing it later prompts questions.
Not automatically. Capital gains and stamp duty both arise on transfer, though incorporation relief can defer the gain where the activity amounts to a genuine business. It has to be assessed on your actual facts.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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