SPV & Company Structuring
'Put it in a company' is the most-given bad tax advice in UK property. Sometimes it's right — usually because of Section 24 — but the transfer cost, ongoing compliance, and extraction tax can destroy the saving if the model isn't built properly. We match you with a specialist who does the real math.
Why a specialist matters here
Incorporation is a 10-year decision dressed up as a tax question. The headline case — 19–25% corporation tax versus up to 45% personal — ignores that the money inside a company is not the same as money in your pocket. Extraction via dividend or salary adds tax; staying personal and managing Section 24 differently may be cheaper for portfolios under 5 properties.
The three problems a general accountant won't catch
The transfer is the expensive bit
Every property transferred to an SPV triggers SDLT at the current surcharged rates on market value, potential CGT on the uplift since you bought it, plus solicitor and valuation fees per property. For a 4-property Harrow portfolio this is typically £40k–£120k of transfer cost — before you save a penny of Section 24.
Extraction costs are invisible in the pitch
Money inside an SPV pays corporation tax at 19–25%. Taking it out as dividend pays personal dividend tax on top — up to 39.35%. The effective tax on extracted profit can be higher than income tax on the same profit earned personally, depending on your other income.
Ongoing compliance is not free
An SPV needs annual accounts, a corporation tax return, confirmation statements, and proper director/shareholder records. Expect £1,500–£3,000 per company per year in accountancy fees, plus the director's personal self-assessment. This recurring cost eats into the tax saving.
What the specialist delivers
Full transfer cost model
Exact SDLT, CGT exposure, and legal costs calculated against your actual portfolio. Break-even year clearly stated. If incorporation doesn't save money within a reasonable horizon, you're told to stay personal.
Extraction strategy design
If you incorporate, how you extract matters as much as how you structured. Salary vs dividend vs pension contribution vs director's loan — planned to minimise the combined tax on retained and extracted profit.
Hybrid structure assessment
Often the right answer is neither 'fully personal' nor 'fully incorporated' — it's keeping existing properties personal and buying new ones through an SPV. A specialist models this against the pure options.
Formation and compliance handover
If you proceed, incorporation is handled end-to-end: company formation, mortgage restructuring guidance, transfer execution, and the first year of accounts and CT600.
SPV Structuring in specific Harrow areas
We publish in-depth analysis only for area–service combinations where we have genuinely distinctive angles. No area–service pages are generated unless we've actually written about them.
SPV incorporation in Edgware: why HA8 portfolios need cross-borough structural advice
SPV incorporation in Rayners Lane: why HA2 portfolios should usually incorporate forwards, not backwards
SPV incorporation in Stanmore: when s162 TCGA 1992 defers the CGT — and when HMRC challenges it
FAQs on spv structuring
Is it too late to incorporate?
Will my mortgage lender allow a transfer to an SPV?
What's the break-even point?
Does an SPV help with IHT as well as Section 24?
Model the numbers before you commit.
Calculator · 5 min
Incorporation Break-Even Calculator
Work out when transferring your BTL portfolio into a limited company would recover its one-off transfer cost — and when the hybrid structure is better.
Open the tool →Decision tree · 4 min
Should I incorporate my BTL portfolio?
A short guided flow that asks about portfolio size, leverage, tax band, and spousal situation — then gives you a specific recommendation and next step.
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