Expert Property Accounting Advice from Hammond & Co
The property market has changed dramatically over recent years. Section 24 restrictions, rising mortgage costs, and shifting tax rules have made personal ownership of rental properties far less efficient than it used to be.
More landlords are discovering that moving their property portfolio into a limited company can be one of the smartest long-term decisions for growth, tax efficiency, and protection.
But here’s the catch: it’s not just about registering a company and transferring properties. You need a carefully planned strategy covering tax, finance, legal obligations, future growth, and family succession. That’s where Hammond & Co comes in.
The Key Benefits of Holding Property in a Limited Company
1️⃣ Tax Efficiency That Works in Your Favour
Under Section 24, individual landlords can no longer fully deduct mortgage interest from rental income. This often results in higher tax bills.
A limited company can:
- Deduct 100% of mortgage interest as a business expense.
- Pay corporation tax on profits (currently 19–25%) rather than higher personal income tax (40–45%).
At Hammond & Co, we use detailed tax planning strategies to help clients structure their portfolios to keep more of what they earn.
2️⃣ Retain, Reinvest, and Grow on Your Own Terms
Personal ownership means profits are taxed immediately. With a company, profits can be retained to fund new purchases, refurbishments, or debt repayment — without the constant tax drag.
We also provide smart extraction strategies, so you know exactly when and how to take income tax-efficiently.
3️⃣ Protect Your Personal Assets
Holding property in a company creates a legal separation between your personal finances and your property business.
This:
- Protects your home and personal savings from business liabilities.
- Adds credibility when dealing with lenders and partners.
While personal guarantees may still be requested, the company structure provides an extra layer of protection.
4️⃣ Easier Succession & Legacy Planning
Your property portfolio is more than income — it’s your legacy.
With a limited company, you can:
- Transfer shares to family members gradually.
- Plan inheritance efficiently to reduce Inheritance Tax exposure.
- Maintain control while passing wealth to the next generation.
Our incorporation specialists can structure shares to support family succession while protecting your investments.
5️⃣ Professional Credibility with Lenders and Agents
Banks, brokers, and letting agents increasingly view incorporated landlords as serious investors.
Benefits include:
- Access to specialist mortgage products for limited company landlords.
- Easier refinancing and portfolio expansion.
- Clear professional structure, reducing disputes and improving credibility.
At Hammond & Co, we liaise with your mortgage advisers to ensure your structure aligns perfectly with financing arrangements.
What to Watch Out For — and How We Solve It
Challenge |
How Hammond & Co Helps |
Stamp Duty Land Tax (SDLT) |
We assess relief eligibility and factor costs into your strategy. |
Capital Gains Tax (CGT) |
We forecast liabilities and plan timing to minimise exposure. |
Mortgage Refinancing |
We coordinate with brokers and lenders specialising in company BTL mortgages. |
Dividend Tax |
We design extraction plans that balance salary, dividends, and reinvestment. |
Ongoing Compliance |
We manage bookkeeping, VAT (if applicable), annual accounts, and Companies House filings. |
We consider every angle, so you can move forward with confidence.
Why Hammond & Co Is the Right Partner
🧭 We Think Ahead
We don’t just set up your company and leave. We provide:
- Property-focused tax planning
- Quarterly management reviews
- Guidance on profit extraction
Our Month-9 Tax Planning Review forecasts your year-end position, identifies savings, and keeps you in control.
🏗️ We Understand Property Inside Out
From first-time landlords to portfolio owners with 20+ properties, we know the challenges: Section 24, rising rates, compliance pressures, and financing constraints.
Our Landlord Accounting Service integrates:
- Xero cloud accounting for real-time reporting
- Dext for seamless invoice and receipt capture
- Month-9 forecasting for proactive tax planning
- SmartVault and SignWell for secure document management
💼 We Handle the Transition End-to-End
From company registration and bank setup to liaising with solicitors and brokers, our process is streamlined, transparent, and stress-free.
📊 We Model the Numbers Before You Commit
We provide a detailed side-by-side projection comparing personal ownership vs. limited company ownership — so you know the real cost, benefit, and breakeven point before taking action.
💜 We Live by Our Values
Flexible. Persistent. Positive. Trust. Team.
At Hammond & Co, these values guide everything we do. We build long-term relationships grounded in honesty, clarity, and care — because when it comes to your property investments, accounting does matter.