Ltd Co vs self-employed: should you incorporate your rentals?

Incorporation is the question every squeezed landlord asks. This tool answers it with your numbers — annual saving, one-off cost and payback period — not a rule of thumb.

Running property through a limited company sidesteps Section 24 (a company deducts mortgage interest in full) and pays Corporation Tax instead of income tax. But incorporating isn't free: there's SDLT on transfer, potential CGT, higher mortgage rates and extra accountancy.

The Ltd Co vs Self-Employed dashboard puts both routes side by side — costs, tax and take-home — then works out your annual saving, the one-off transition cost and how many years it takes to pay back. It even models dividend extraction at the 2026/27 rates.

Crucially, it's updated for the April 2027 rental-rate rise, which widens the gap and makes the company route more attractive for higher-rate landlords than it was even a year ago.

Who it's for: landlords with two or more mortgaged properties weighing up incorporation, who want a payback number before they pay a solicitor.

Educational guidance only — not financial, tax or legal advice. Tax and property rules change; always verify current figures on GOV.UK and take professional advice before acting. © 2026 Property Clues.