Use this calculator to compare the estimated annual cash position of holding a buy-to-let property personally or through a limited company. It shows how rent, property costs, mortgage interest and tax can affect each route.
It is a planning tool, not a recommendation to incorporate. The right structure depends on your income, portfolio, borrowing, need to draw profits, purchase plans and longer-term exit strategy.
Not sure which ownership route fits your plans?
Get a tailored landlord tax review before you buy, incorporate or transfer a property.
Whether you own property personally or through a company, good records are essential. See the top allowable rental expenses, plus further costs that may reduce your taxable property profits.
Property Tax: 30 Questions Landlords Ask Most Often
From mortgage-interest relief and dividend tax to Stamp Duty and Capital Gains Tax, the rules can feel overwhelming. Get clear answers to the issues that influence your ownership decision.
Limited Company v Personal Ownership: Get a Tailored Review
The best ownership structure depends on your tax rate, mortgage interest, rental profits, number of properties and plans for taking income. A tailored assessment can reveal the true long-term position.
Where jointly owned property produces rental income, the beneficial ownership split can be important. For some married couples, a correctly structured Deed of Trust may improve tax efficiency.
Family Investment Companies: A Different Way to Hold Wealth
A Family Investment Company can help maintain a long-term focus on property and inheritance planning, creating a separation between economic value and control. Review how it can work alongside personal or corporate ownership.
If you have rental income from previous years that has not been declared, it is important to act promptly. HMRC’s Let Property Campaign may offer a route to regularise your tax affairs.
The following calculator and commentary are provided solely for informational purposes. Please note that this information may not be current or complete and that it may only apply to certain types of residential properties in the UK. It does not constitute any form of advice.
UK Property Tax
Capital Gains Tax Calculator
Estimate your Capital Gains Tax when you sell a UK property
£
£
£
Include stamp duty, legal and estate agent fees, and capital improvements such as an extension. Do not include mortgage interest, running costs or general repairs.
£0
This is your sale price minus your purchase price minus your costs above. It is before Private Residence Relief, the Annual Exempt Amount, or any other allowance.
%
Co-owner holds the remaining 50%.
£
£
This is your income after the Personal Allowance, not your total income. It decides how much of your gain is taxed at 18% rather than 24%.
months
months
Total Capital Gains Tax due
£0
60-day reporting deadline: if any Capital Gains Tax is due on a UK residential property, you must report the sale and pay the tax owed to HMRC within 60 days of completion, using HMRC's Capital Gains Tax on UK property service. This applies even if you also complete a Self Assessment tax return. Missing the deadline triggers an initial £100 penalty, with further daily and 6-month penalties plus interest if the delay continues. Non-UK residents must report every disposal within 60 days, even where no tax is due.
Private Residence Relief (simplified): this estimate assumes relief for the months you lived in the property as your main home, plus a further 9 months at the end of ownership (36 months if you were disabled or had moved into care). It does not allow for other periods of deemed occupation, such as time working away, letting relief, or business use of part of the property. If any of these apply, the relief due, and the tax owed, may differ from this estimate.
Please note: this calculator is designed for individuals selling a UK residential property such as a buy-to-let or second home. It does not cover limited companies, trusts, personal representatives of an estate, non-UK residents, or mixed business and residential use. Joint ownership figures assume the entered incomes belong to each named owner in their stated share. For joint owners, HMRC looks at the actual beneficial ownership share, not just what is on the title deeds, and any change to that split normally needs to be agreed and evidenced before the sale. Capital Gains Tax rates and allowances are the same across the whole of the UK, including Scotland and Wales, even though income tax bands differ between nations. This figure is an estimate only; for a full breakdown of how it was calculated, please speak to your adviser.
60-day reporting deadline:
If any Capital Gains Tax is due on a UK residential property, you must report the sale and pay the tax owed to HMRC within 60 days of completion, using HMRC’s Capital Gains Tax on UK property service. This applies even if you also complete a Self Assessment tax return. Missing the deadline triggers an initial £100 penalty, with further daily and 6 month penalties plus interest if the delay continues. Non-UK residents must report every disposal within 60 days, even where no tax is due.
Please note:
This calculator is designed for individuals selling a UK residential property such as a buy-to-let property. It does not cover limited companies, trusts, personal representatives or UK assets, non-UK residents, or mixed business and residential use. Joint ownership figures assume the interest/disposal being to each named person in their capital shares. For joint owners, HMRC looks at the actual beneficial ownership share, not just what is on the title deeds, and any change to that split normally needs to be agreed and evidenced before the sale. Capital Gains Tax rates and allowances are the same across the whole of the UK, including Scotland and Wales, even though income tax bands differ between countries. This figure is an estimate only; for a full breakdown of how it was calculated, please speak to your adviser.
Our experts are waiting to speak to you
Own your rental property in your personal name? We Do Your Tax Return in 3 Easy Steps from just £200+VAT.
Using a Limited Company? From just £590+VAT, We do all the book keeping, file your accounts with Companies House and HMRC and show you how to extract up to £800 per Director/Shareholder tax free.
We will only contact you in relation to latest news & updates that we think will be of interest to you. We will not disclose your information to any third party and you can unsubscribe from our database at any time.
Compare the whole picture
There is no universal answer to company versus personal ownership. Personal ownership can be simpler and may suit landlords who need rental income personally. A company can suit some investors who retain profits for reinvestment, but annual tax is only one part of the decision.
For personally owned residential lets, finance costs are generally relieved through a basic-rate tax reduction rather than deducted in full from rental income. Companies are taxed under different rules and can generally deduct qualifying finance costs when calculating taxable profit. But company profits may face another tax charge when paid to the owner.
Existing portfolios need extra care
Moving personally held property into a company can be treated as a disposal. CGT, property transaction tax and refinancing costs may arise, even where the same person controls the company. A full review should consider the portfolio’s current value, gains, debt and future plans before any transfer is made.
No. It can be beneficial in some circumstances, especially where profits are retained, but the best route depends on income, borrowing, extraction plans, compliance costs and future property plans.
Companies generally calculate taxable profits under different rules from individual residential landlords and can normally deduct qualifying finance costs. The overall outcome still needs to include corporation tax and the tax of taking money from the company.
Do not assume so. A transfer may trigger CGT and property transaction taxes, as well as refinancing costs. Specialist relief may be available only in particular circumstances.
It depends on why you are investing, whether you need income personally, expected profits, borrowing options and whether you intend to build a portfolio. A calculation and tailored review can help identify the trade-offs.
Read our Welsh landlord property-tax guide for a practical explanation of LTT, additional-property purchases and planning before completion.
UKLandlordTax.co.uk is the trading name of Thandi Nicholls Ltd Accountants Registered Office: Creative Industries Centre, Glaisher Drive, Wolverhampton WV10 9TG.
Registered in England. Company Number 7319439. Director S S Thandi BA
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
