Limited company vs personal ownership calculator (2027/28)
Compare the yearly tax on your rental profit if you own personally or through a limited company, using the rates confirmed in the 28 October 2026 Budget.
Key facts
- Personally, rental profit is taxed at 24% / 44% / 49% from April 2027, with a 24% credit for mortgage interest.
- A company pays 19% to 25% corporation tax and deducts interest in full.
- Money taken out as dividends is taxed again at 10.75% / 35.75% / 39.35%.
- This compares yearly running tax only. Moving existing property into a company usually costs Stamp Duty and CGT.
How the comparison works
Personal: rental profit is taxed on top of your other income at the 2027/28 property rates, minus a 24% credit on mortgage interest, using our landlord tax engine.
Company: interest and running costs are deducted, then corporation tax is charged at 19% up to £50,000 of profit, 25% above £250,000, with marginal relief in between. Any profit you take as dividends is taxed on top of your other income, after the £500 dividend allowance.
What the numbers usually show
Higher and additional-rate taxpayers with large mortgages tend to save the most, especially if they leave profit in the company to buy more property. Basic-rate landlords who take everything out often pay more through a company. See our analysis of 18 scenarios.
Costs this calculator doesn't include
- Stamp Duty when a company buys existing property from you: usually at the higher rates. See the Stamp Duty calculator.
- Capital Gains Tax on transferring property to the company at market value. See the CGT calculator.
- Refinancing fees and often higher company mortgage rates.
- Tax when you eventually wind up the company or sell its shares.
Read limited company or personal name? and take professional advice before restructuring.
Frequently asked questions
Is a limited company better for buy-to-let from 2027?
Often for higher-rate taxpayers with mortgages, because companies deduct interest in full and pay 19% to 25%, against 44% or 49% personally. Basic-rate landlords who need all the income may pay more through a company.
Do companies pay the 24% property income rate?
No. The property income rates are for individuals. Companies pay corporation tax.
Sources
- GOV.UK: Corporation Tax rates
- GOV.UK: Income Tax rates and allowances, current and past
- HM Treasury: Budget documents, 28 October 2026
- GOV.UK: Tax relief for residential landlords, how it's worked out
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.