Should You Buy London Property Through a Limited Company or in Your Own Name
For many London buyers, especially those purchasing at higher price points or considering investment, one question inevitably arises before exchange. Should the property be bought in your own name, or through a limited company?
This is not a technical footnote. The decision affects tax exposure, financing options, flexibility and long term strategy. In 2026, with tax rules firmly embedded and lending criteria more nuanced, the choice matters more than ever.
The correct answer is rarely universal. It depends on intent, time horizon and how the property fits within your wider financial life.
Buying in Your Own Name The Traditional Route
Buying property in your personal name remains the most common route in London, particularly for owner occupiers.
For main residences, this structure is often the simplest and most efficient. There is no corporate administration, no additional reporting and fewer legal layers. Mortgage products are wider, cheaper and easier to access. Lenders generally offer better terms to individuals than to companies.
For owner occupiers, the most significant advantage is the potential relief from capital gains tax on sale of a primary residence. This relief does not apply to properties held through companies.
For buyers planning to live in the property long term, simplicity and tax efficiency often align.
The Tax Reality for Personal Ownership
Personal ownership does come with tax exposure.
Rental income is taxed at personal income tax rates, which can be high for additional rate taxpayers. Mortgage interest relief for individuals has been restricted, meaning finance costs can no longer be fully offset against rental income.
Stamp duty can also be higher for individuals purchasing additional properties, due to surcharges on second homes.
These factors make personal ownership less attractive for pure investment, particularly where leverage is involved.
Buying Through a Limited Company The Strategic Alternative
Limited company ownership has become increasingly popular among London investors.
The primary attraction lies in tax treatment. Rental profits within a company are taxed at corporation tax rates, which are generally lower than higher personal income tax rates. Mortgage interest and allowable expenses can usually be offset more fully against profits.
This structure can significantly improve cash flow for leveraged investment properties.
Company ownership also offers flexibility in profit retention. Income can be retained within the company rather than extracted immediately, allowing for reinvestment or deferred personal taxation.
The Trade Offs of Company Ownership
Limited company ownership is not without cost.
Stamp duty is higher, as corporate buyers are subject to the additional property surcharge from the first purchase. In certain cases, higher rates may apply depending on property value and use.
Mortgage options are more limited and typically more expensive. Interest rates are higher, and lenders require more documentation and guarantees.
There are also ongoing administrative costs. Annual accounts, tax filings and compliance requirements add both cost and complexity.
For owner occupiers, company ownership is rarely practical or tax efficient, especially where the property is intended as a main residence.
Financing Differences Matter
Mortgage availability is one of the most decisive factors in this choice.
Personal buyers have access to the widest range of lenders and products, including long term fixed rates and higher loan to value options.
Company borrowers face stricter criteria. Loan to value ratios are often lower. Personal guarantees are common. Lenders scrutinise company structure, directors and long term intent.
Buyers who expect to refinance, restructure or sell within a short timeframe should factor these constraints into their decision.
Capital Gains and Exit Strategy
Exit planning is where the decision often becomes clear.
Properties owned personally may benefit from primary residence relief if they have been lived in as a main home. This can eliminate capital gains tax entirely.
Company owned properties do not benefit from this relief. Gains are taxed within the company, and additional tax may arise when extracting proceeds.
However, for long term investors who plan to hold assets indefinitely or roll profits into further acquisitions, company ownership can still be efficient.
The key is whether the property is a home or a financial asset.
When Buying Through a Company Makes Sense
Company ownership tends to suit buyers who are:
Purchasing purely for investment
Higher or additional rate taxpayers
Using leverage to enhance returns
Planning to retain profits within a structure
Building a long term portfolio rather than a single asset
In these cases, the additional complexity is often justified by improved tax efficiency.
When Personal Ownership Is Usually Better
Buying in your own name is generally preferable when:
The property will be your main residence
You value simplicity and flexibility
You want access to the widest mortgage options
You expect to benefit from future capital gains relief
You do not intend to build a portfolio
For lifestyle led purchases, personal ownership usually aligns best.
The Role of Bespoke Advice
This decision should never be made in isolation.
Tax rules, personal income, residency status and long term plans all interact. What works for one buyer can be inefficient for another with a similar budget.
Sophisticated London buyers take advice from tax specialists and mortgage advisers before committing. They stress test scenarios and consider not just acquisition but ownership and exit.
Final Thought
Buying London property through a limited company or in your own name is not a question of right or wrong. It is a question of alignment.
Company ownership offers tax efficiency and reinvestment flexibility for investors willing to accept complexity. Personal ownership offers simplicity, mortgage access and lifestyle advantages for owner occupiers.
The smartest buyers do not follow trends.
They choose the structure that serves their long term strategy, not just their short term purchase.
In London property, how you own is just as important as what you buy.