Incorporating a property portfolio: pros and cons
Incorporation can restore full mortgage interest relief and support long-term growth, but transferring properties into a company has real costs and consequences.
6 min read · Updated 27 August 2026
Overview
Incorporation can restore full mortgage interest relief and support long-term growth, but transferring properties into a company has real costs and consequences.
Tax benefits of a company
Corporation tax rates and full deduction of mortgage interest as a business expense can suit higher-rate taxpayers with larger portfolios.
Transfer costs
Moving existing properties into a company usually triggers stamp duty land tax and potentially capital gains tax as if selling to a third party.
Mortgage market differences
Limited company buy-to-let mortgages often carry higher rates and fewer product choices than personal-name lending.
When it makes sense
Larger portfolios, higher-rate taxpayers planning to hold long term, and those not needing to extract profit immediately tend to benefit most.
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