Day: November 7, 2023

Why Are Landlords Setting Up Limited Companies for Their Rentals?

Since 2017 the number of limited companies being set up by landlords holding properties has tripled, with 300,000 being recorded in 2022 In fact, it is estimated that 40% of all new buy to let purchases are now made via a company structure.

This change in legal entity for many landlords was brought about by the alternations in the tax relief system which was announced in 2015, known as Section 24 and changed how landlords were taxed on their income.

This blog looks at why personal landlords have started switching to owning properties as a limited company and the pros and cons of such a move.