Key findings
We assumed mortgage interest equal to 40% of rental profit and £1,500 a year of company running costs. Corporation tax was charged at 19% to 25% with marginal relief, and dividends at 2027/28 rates. Figures show the yearly saving through a company after its £1,500 running costs; a negative figure means the company costs more.
A basic-rate landlord with £30,000 of other income and £15,000 of profit pays £2,160 personally but £2,024 through a company (plus £1,500 of company running costs) if everything is paid out as dividends.
Taking all profit out as dividends (yearly saving through a company)
| Other income | £15,000 profit | £30,000 profit | £60,000 profit |
|---|---|---|---|
| £0 | −£2,925 | −£3,364 | −£2,085 |
| £30,000 | −£1,364 | +£248 | +£3,662 |
| £50,270 | +£242 | +£1,086 | +£4,827 |
| £70,000 | +£242 | +£1,086 | +£8,044 |
| £100,000 | +£3,242 | +£6,357 | +£9,443 |
| £150,000 | +£791 | +£2,123 | +£4,785 |
Keeping all profit in the company (yearly saving)
| Other income | £15,000 profit | £30,000 profit | £60,000 profit |
|---|---|---|---|
| £0 | −£2,925 | −£3,332 | −£486 |
| £30,000 | −£765 | +£1,631 | +£8,531 |
| £50,270 | +£2,235 | +£5,685 | +£14,639 |
| £70,000 | +£2,235 | +£5,685 | +£17,856 |
| £100,000 | +£5,235 | +£10,956 | +£19,356 |
| £150,000 | +£2,985 | +£7,185 | +£15,585 |
Profit kept in a company has only paid corporation tax so far. It's taxed again when eventually taken out, so the second table shows a deferral, not a permanent saving.
Methodology
Personal tax uses the 2027/28 property rates (24%/44%/49%), a 24% finance cost credit and the new Personal Allowance ordering rule. Company tax: corporation tax at 19% to 25% with marginal relief, then dividend tax at 10.75%/35.75%/39.35% after the £500 allowance, stacked on the owner's other income. One-off costs of incorporation (Stamp Duty, CGT, refinancing) are excluded. Calculated with the engine behind our company vs personal calculator.
Free to use
Sources
- GOV.UK: Corporation Tax rates
- GOV.UK: Income Tax rates and allowances, current and past
- HM Treasury: Budget documents, 28 October 2026
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.