Hold property in a limited company (an SPV) and you’re in a different tax world: you file a CT600 Company Tax Return and pay Corporation Tax, not Self Assessment. Here’s how company property tax differs from personal, why mortgage interest is fully deductible, capital allowances, director’s loans, ATED, and the deadlines.
The CT600 is the Company Tax Return a limited company files to report its profits and pay Corporation Tax. If your buy-to-lets are held in a company — often called an SPV (Special Purpose Vehicle) — the company’s rental profits are taxed through the CT600, based on its accounting period rather than the personal tax year.
The company deducts its running costs — mortgage interest, management and letting fees, insurance, repairs, service charges, accountancy and so on.
On top of revenue costs, capital allowances (the Annual Investment Allowance and Writing-Down Allowances) give relief on qualifying plant and fixtures — though not on the residential building itself.
Money you put into or take out of the company runs through your director’s loan account. If that account is overdrawn (you owe the company) at the year end, a temporary S455 tax charge can apply until it’s repaid.
Profit is usually extracted as a mix of salary and dividends, each with its own tax treatment — worth planning with an accountant.
If the company holds residential property valued above the ATED threshold, an Annual Tax on Enveloped Dwellings return and charge may apply — though reliefs exist for genuine commercial lettings. The company also files annual accounts and a Confirmation Statement with Companies House.
It can help higher-rate taxpayers (full mortgage-interest relief and retained profits), but transferring personal property into a company can trigger Stamp Duty and Capital Gains Tax, and adds admin. It’s very situation-specific — take professional advice first.
Yes. The Section 24 restriction only applies to individuals; a company deducts finance costs in full against its profits.
A temporary Corporation Tax charge on a director’s loan that’s overdrawn at the year end. It’s refunded once the loan is repaid.
File the CT600 within 12 months of the accounting period end; pay the Corporation Tax earlier, 9 months and 1 day after the period end.
Not for company-held property income — that’s taxed through the company. But you’ll likely still file personal Self Assessment for the salary or dividends you take out.
This guide is general information, not tax advice. Tax rules, rates and allowances change frequently — check GOV.UK and speak to a qualified accountant for your own circumstances.
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