The property market has changed — and so should the way landlords structure their businesses. Hammond & Co explains why moving your buy-to-let portfolio into a limited company can protect profits, reduce tax, and future-proof your investments.
Introduction: The Game Has Changed for Landlords
At Hammond & Co, we work with landlords across Derbyshire and beyond — from single-property investors to those managing entire portfolios. One message has become clear: the old ways of running a buy-to-let business no longer deliver the same results.
Higher mortgage rates, reduced tax reliefs, tighter regulations, and the full impact of Section 24 have made it harder to keep profits where they belong — in your pocket.
This leads many landlords to ask:
“Should I move my property business into a limited company?”
Our answer: often yes — but only when it’s planned properly. At Hammond & Co, we think through every detail so landlords can benefit from incorporation while avoiding costly surprises.
Why the Old Sole Trader Model Is No Longer Working
For years, holding properties personally was simple. Interest costs were fully deductible, and tax rules were kinder. Those days are gone.
Since Section 24, individual landlords can no longer fully deduct mortgage interest. Instead, a basic-rate tax credit of just 20% applies.
The impact is significant:
- Many higher-rate taxpayers pay tax on income that doesn’t exist once mortgage costs are considered.
- Effective tax rates for landlords have risen sharply.
- Cash flow is tighter, limiting reinvestment or growth opportunities.
In other words, landlords are now taxed on turnover, not profit. For those treating property as a business, this simply doesn’t make sense. Incorporation provides a solution.
Why More Landlords Are Incorporating
When your property business grows, you have two choices:
- Continue operating as an individual — facing rising tax and compliance pressures.
- Incorporate — creating a separate legal entity, giving you more flexibility, protection, and control.
At Hammond & Co, we’ve guided dozens of landlords through this process, building property-holding companies designed for long-term success.
The Strategic Benefits of Moving to a Limited Company
1️⃣ Lower Tax Rates and Greater Control
Company profits are taxed at Corporation Tax rates (19–25%) rather than personal rates (20–45%).
- Companies can retain profits rather than paying all out immediately.
- We design profit-extraction strategies, balancing salary, dividends, and retained earnings to maximise your returns.
2️⃣ Full Mortgage Interest Deductibility
Mortgage interest is a fully deductible business expense inside a limited company, restoring profitability for many landlords affected by Section 24.
3️⃣ Building for Growth and Reinvestment
Company ownership allows profits to be retained and reinvested for new purchases, refurbishments, or debt repayment.
- This “retain and reinvest” strategy helps landlords build scalable, sustainable portfolios.
4️⃣ Clearer Separation and Limited Liability
A company structure separates personal and business finances, giving:
- Protection for personal assets
- Professional credibility with lenders
- Clear accounting and compliance lines
While personal guarantees may still be requested, your exposure is significantly reduced.
5️⃣ Easier Succession Planning and Family Involvement
A company structure simplifies family involvement:
- Shares can be issued to spouses, partners, or children.
- Inheritance planning becomes smoother, allowing ownership via shares rather than complex property transfers.
Hammond & Co ensures incorporation aligns with your long-term legacy goals for both tax efficiency and peace of mind.
What to Consider Before You Switch
Incorporation is powerful but not right for everyone. Here’s what we help landlords think through:
- Capital Gains Tax (CGT): Transferring personally held properties is treated as a sale for tax purposes. Reliefs may apply, and we calculate exact liabilities.
- Stamp Duty Land Tax (SDLT): Your company “purchases” your properties. Reliefs may reduce costs — we explore every option.
- Mortgage Considerations: Lenders often require remortgaging. We work with trusted specialist brokers to maintain competitive terms.
- Running Costs & Compliance: A company requires bookkeeping, payroll, and Companies House filings — all handled by us for a seamless transition.
How Hammond & Co Makes Incorporation Easy
1️⃣ Strategic Consultation
We review your portfolio, tax position, and long-term goals. Using our Month-9 Forecasting Model, we show you projected outcomes for sole trader vs. company.
2️⃣ Incorporation Setup
We manage everything:
- Company registration and SIC codes
- Accounting software setup (Xero & Dext)
- Directors’ and shareholders’ documents
- Coordination with solicitors and mortgage brokers
3️⃣ Financial Modelling & Tax Planning
Detailed projections for tax, cash flow, and extraction strategies — so you make informed decisions.
4️⃣ Ongoing Support & Compliance
From bookkeeping to corporation tax returns, dividend planning, and Month-9 reviews — we help you run a better property business.
A Real-World Example
A couple with four properties in Nottinghamshire approached us after Section 24 increased their tax bill. Within 12 months:
- Effective tax rate reduced by over 20%
- Profits retained to fund a fifth property
- Share classes set up to include children for inheritance planning
This is the kind of transformation possible when landlords take a business-minded approach with the right partner.
Why Choose Hammond & Co?
🟪 Specialists: Property accounting is a core service — we keep up with HMRC changes, mortgage shifts, and legislation.
🟪 Proactive: Our Month-9 Tax Planning identifies opportunities early.
🟪 Local & Personal: Offices in Ripley and Chesterfield, we know our clients and local market.
🟪 Values-Driven: Flexible. Persistent. Positive. Trust. Team. We guide landlords with honesty and care.
Next Steps
If you’re wondering whether incorporation could save tax and strengthen your position:
1️⃣ Book a free discovery meeting — review portfolio and goals
2️⃣ Receive a personalised incorporation analysis
3️⃣ Let us handle the transition — company formation, software setup, mortgage coordination, and ongoing management
👉 Book your free landlord consultation with Hammond & Co today
Conclusion: Think Like a Business
The property world has evolved — and successful landlords are evolving with it.
Running your buy-to-let operation as a limited company is no longer just a tax decision; it’s a strategic move for control, protection, and long-term growth.
At Hammond & Co, we handle everything — from Section 24 relief to SDLT planning, corporate structuring, succession planning, and real-time tax forecasting.
We don’t just manage numbers — we help landlords build businesses that last.