Should a non-resident hold UK property in a limited company?

Full deductibility of mortgage interest against rental profit, corporation tax rates of 19% to 25% rather than income tax up to 45%, and the ability to retain profit in the company to fund further purchases without a personal tax charge, are the main attractions for heavily geared or growing portfolios.

A company also separates the property from the individual's personal estate for inheritance tax planning purposes in some structures, though this needs specific advice rather than assumption.

Extracting profit as a dividend to fund living costs abroad adds a further layer of tax at home, and the 3% residential stamp duty surcharge applies to almost all company purchases regardless of it being a first property, alongside the further 2% non-resident surcharge. Running costs of £1,000 to £2,000 a year for accounts and filings also apply regardless of profit.

A single low-geared property held for long-term personal use or eventual sale to family often works better held personally, where capital gains tax rates and reliefs are more straightforward than the mix of corporation tax and dividend tax a company involves on exit.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.