Limited Company Property Investing Explained

Should you buy property in your personal name or through a limited company?In this episode of From The Ground Up, Steve Doran breaks down why UK property investors need to think carefully about tax, structure and long-term portfolio growth before buying their next investment.Steve explains how Section 24 changed buy-to-let investing, why personal-name landlords can end up paying tax on “phantom profit”, and how limited company property investing can protect more of your cashflow. Using a real HMO example, he shows how the difference between buying personally and through a limited company can be worth thousands of pounds per year.He also covers limited liability, personal guarantees, inheritance tax planning, Family Investment Companies, limited company mortgages and the common myths that stop investors making better decisions.To learn more about Steve Doran and property investing strategy, visit: https://stevedoran.co.uk/KEY MOMENTS:0:00 – Why Steve recommends limited company property investing00:34 – Why your own home should usually stay in your personal name01:17 – Steve’s personal experience of buying property personally01:56 – Why investors historically bought in their personal name03:31 – Section 24 and paying tax on phantom profit04:39 – Steve’s free Section 24 calculator05:14 – HMO tax example: personal name versus limited company06:49 – How tax drag slows portfolio growth07:28 – Limited liability and why company structure matters07:45 – Should every property have its own limited company?08:34 – Personal guarantees explained properly12:22 – Family Investment Companies and inheritance planning13:59 – Why specialist tax advice matters14:52 – What to do if you already own property personally15:12 – Why personal-name landlords are exposed politically16:46 – The extra 2% tax burden on property income16:54 – Capital gains tax risks for personal-name landlords17:52 – Why flipping property personally can create income tax issues18:56 – Five options for landlords who own personally19:16 – Option 1: Sell the property and redeploy the capital21:21 – Option 2: Keep the property in your personal name22:17 – Option 3: Use a property management company23:35 – Option 4: Use a rent-to-rent structure with yourself24:51 – Option 5: Incorporate your portfolio into a limited company26:04 – Section 162 incorporation relief explained26:41 – HMRC v Ramsay and the 20-hour property business test27:12 – Stamp duty, linked transactions and non-residential rates28:10 – Partnership structures and Schedule 15 relief29:08 – Refinancing when moving property into a company30:29 – Myth-busting limited company mortgage rates