Buying a home in England personally or through a company:
which obligations change?

Personal ownership and a Ltd: what needs to be done?

This table compares tasks when buying a home in England personally or through a limited company (Ltd). The company administration rows concern a UK-incorporated Ltd; an overseas company’s property profits are addressed separately below. It does not recommend an ownership structure. PSC means a person with significant control.

SDLT: higher rates, the 17% charge and residence

Corporate residential purchases fall within the higher-rate rules, adding five percentage points to standard residential rates. For certain company purchases costing more than £500,000, however, a flat 17% rate applies to the whole price. This is not another 17% added to the higher-rate bands. (F1, F2)

A purchase for a qualifying property rental business may obtain relief from the 17% charge. HMRC requires the business to operate commercially with a view to profit. Relief does not remove SDLT: the higher rates apply instead. Other reliefs and subsequent withdrawal conditions require separate checks. (F1, F2)

A non-UK resident buyer may face a further two percentage points on residential rates. UK incorporation alone does not exclude this surcharge: specified UK companies are also subject to a non-UK control test. Corporate and individual residence tests are different. (F3)

Our stamp duty guide covers the bands and relief conditions. For an estimate use the SDLT calculator. In company mode, the rental-business relief question defaults to “No · 17% rate”. Do not select “Yes” before your solicitor or tax adviser confirms the relief.

ATED: filing can remain necessary when no tax is due

Annual Tax on Enveloped Dwellings (ATED) mainly concerns companies owning UK residential property worth more than £500,000 at the relevant valuation date. Do not automatically treat the purchase price as the current ATED value; check HMRC’s valuation-date rules. The GOV.UK table linked in the sources gives charges for 1 April 2026 to 31 March 2027. (F4)

Relief may be claimed where a property is let commercially to a third party and is not available for occupation by someone connected with the owner. If relief reduces the charge to nil, an annual Relief Declaration Return is needed. SDLT relief does not replace ATED filing. (F5)

GOV.UK distinguishes relief from separate exemption categories. Certain charitable companies and public bodies meeting the conditions are exempt without filing. Neither “all relief removes filing” nor “every exemption requires a return” is correct. (F5)

Use our property tax calendar to track filing and payment dates; confirm when your company enters scope with its accountant.

Income Tax for individuals; Corporation Tax for companies

Personal rental income enters the Income Tax calculation after allowable expenses. The rental income tax guide covers interest restrictions, allowances and filing. This page does not calculate personal tax. (F6)

A Ltd’s taxable profits fall within Corporation Tax. Since 6 April 2020, non-UK resident companies’ UK property business profits have also been subject to Corporation Tax instead of Income Tax. The company’s accountant should check registration and filing requirements. (F7, F17)

For withholding from rent, see the NRLS guide; for separate inheritance rules, see the inheritance tax guide. This page does not repeat their calculations.

Companies House: statements, accounts, directors and PSCs

Review the information held by Companies House and file a confirmation statement at least every 12 months. Statutory annual accounts must also be prepared and sent to Companies House. The confirmation statement, accounts and HMRC Company Tax Return are separate tasks. (F9, F10)

Directors must follow company rules, maintain records, arrange accounts and tax filings, and disclose personal interests in transactions to other shareholders. Employing an accountant does not remove the director’s legal responsibility. (F8)

Identify people with significant control (PSCs), report them to Companies House and report changes. Keeping a shareholder list alone is not enough; check the PSC information and applicable control conditions separately. (F12)

Mandatory identity verification began on 18 November 2025. For existing directors, the 12-month transition is linked to the next confirmation statement; it is not a single deadline for everyone. Each director’s Companies House personal code is required when incorporating a new company. (F11, F16)

PSCs have their own reporting period. Someone who is both a director and a PSC of the same company submits their code separately for each role. Check the PSC’s applicable 14-day period on the register and in the GOV.UK guidance. This process is in force as at 17 October 2026, rather than a future proposal. (F11, F12)

The separate property registration requirements for an overseas entity are covered in our title register guide.

Company borrowing and personal guarantees

For a corporate mortgage application, check products and criteria accepting companies. Separate limited-company buy-to-let products exist: The Mortgage Works, for example, lists a dedicated category. This does not mean prices or terms are the same across all lenders. (F14)

A lender may request a personal guarantee. This agreement can make a director personally liable if the company does not pay, exposing personal assets to claims. Ask your solicitor to review its scope and the amount of liability before signing. (F13)