Limited Company Buy-to-Let Mortgage in Fleet
Since the 2017 Section 24 mortgage interest tax relief restriction, higher-rate taxpayers purchasing buy-to-let properties in personal name pay income tax on rental income before deducting mortgage interest. A limited company pays corporation tax on net profit after interest — which remains fully deductible. For Fleet landlords on 40% income tax, the annual tax saving on a typical £280,000 BTL mortgage at 5% interest is approximately £2,800 per year. Over a 10-year hold that is £28,000 in additional net return from the same rental income.
The Fleet BTL Tax Comparison
Personal name: rental income taxed at 40%, mortgage interest only 20% tax credit. On £15,000 rental income and £14,000 interest: taxable income £15,000 at 40% = £6,000 tax, minus 20% credit on £14,000 = £2,800 credit. Net tax: £3,200. Limited company: £15,000 income minus £14,000 interest = £1,000 profit taxed at 25% = £250 corporation tax. Net retained: £750 versus £11,800 retained personally. The limited company retains 3x more for every pound of net rental profit.
Limited Company BTL Mortgages in Fleet
Limited company BTL mortgages are widely available from specialist lenders across Fleet and the Hampshire market. The rate is typically 0.2–0.5% above equivalent personal name BTL rates. The tax saving for higher-rate taxpayers more than compensates over any standard investment period. The company must be a Special Purpose Vehicle (SIC code 68100 or 68209) set up specifically for property investment. We access the full specialist BTL market and compare all available limited company products.
Setting Up the SPV for Fleet BTL
A buy-to-let SPV costs approximately £50–£100 to set up via Companies House. Annual running costs of £800–£1,500 for an accountant to file corporation tax and accounts. Deposits are introduced as director’s loans, repayable from company profits. We advise on the mortgage structure; your accountant confirms the tax calculation specific to your position.
The Fleet BTL Investment Case
Fleet’s rental demand from Blackwater Valley tech cluster and related employers provides consistent professional tenant demand. The investment case for limited company BTL in Fleet depends on the yield profile versus borrowing cost. With semis at £420,000, a typical gross yield of 4.5–5.5% produces £1,750–£1,925/month gross rental income. After mortgage interest at 5% on a 75% LTV loan, the annual net profit before corporation tax is approximately £5,250. Corporation tax at 25% on this is £1,312 — significantly less than income tax for higher-rate personal taxpayers.
We provide mortgage advice. The tax calculation for your specific position should be confirmed with your accountant. We model the mortgage comparison; your accountant confirms the tax position. Call 01252 111 000 →