Bolton Business Finance is an independent commercial finance broker that arranges buy to let mortgages for limited companies and portfolio landlords, and this page works out whether a property is better bought in your own name or through a company.
This personal vs limited company buy to let calculator compares the two routes side by side on the 2027/28 rules: income tax on rent at the new property rates, corporation tax and dividend tax, how much each route can borrow, the stamp duty, and what you are left with when you sell. It covers residential, commercial and mixed use property in all four UK nations, with up to four owners.
Written by Marcus Wright, owner and founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
The short version
- From 6 April 2027, rent received in your own name is taxed at 22%, 42% or 47%, and residential mortgage interest only earns a 22% tax credit.
- A limited company deducts all of its mortgage interest and pays corporation tax at 19% to 25% on what is left.
- Taking that profit out as dividends costs 10.75%, 35.75% or 39.35% on top, so the company route is strongest when the profit stays in the company.
- Higher and additional rate taxpayers buying residential property with a mortgage usually keep more through a company. Basic rate taxpayers who need every pound of the income usually do not.
- Lenders typically test company rent at 125% cover, against 145% for a higher rate taxpayer buying personally, so a company can often borrow more on the same rent.
- Stamp duty is the same both ways for anyone who already owns a home, because a company always pays the higher rates.
- Commercial property has no interest restriction in either route, so the choice there comes down to income tax against corporation tax.
Personal vs limited company buy to let calculator
Compares buying one property in your own name with buying it through a new limited company. Residential, commercial or mixed use, anywhere in the UK, one to four owners. Nothing is sent anywhere and nothing is stored.
Start with an example, or enter your own figures
Your figures
Each year
In your own name
Through a limited company
What is corporation tax?
The tax a company pays on its profit: 19% on profits up to £50,000, 25% on profits over £250,000 and a sliding rate in between. Profit left in the company has only had corporation tax taken off. Dividends you take out are then taxed on you as well.
What is a director loan?
Instead of buying shares, you lend the company the deposit and buying costs. The company pays you back out of its profit, and those repayments are not taxed because it is your own money coming back. Once the loan is repaid, money you take out is normally a dividend and is taxed.
Each owner
How much you could borrow
What is rental cover?
Lenders check that the rent comfortably covers the mortgage interest. At 125%, the yearly rent must be at least 1.25 times the interest worked out at the stress rate. Higher rate taxpayers borrowing in their own name are usually tested at 145%, because more of their rent goes in tax.
What is a stress rate?
The interest rate the lender uses for the rental cover test. On a five year fix it is usually the rate you pay. On a shorter fix lenders use a higher figure, in case rates have risen when the deal ends.
What is loan to value?
The mortgage as a share of the property value. At 75%, a £200,000 property supports a mortgage of up to £150,000 and you put in the other £50,000.
Cash needed upfront
Why it came out this way
Figures you entered
Figures are estimates based on the details you entered and the tax rules as we understand them for the tax year chosen, rounded to the nearest pound. They are an illustration only, not tax advice, not a quote and not an offer of finance, and no liability is accepted for any error or omission. Take advice from an accountant or tax adviser before you decide how to buy.