Considering incorporation, what are the current corporation tax rates for a limited company holding buy-to-let properties in the UK, and at what rental income level does it become tax-efficient compared to being a sole trader?
Quick Answer
For UK limited companies holding buy-to-let properties, Corporation Tax is 19% on profits under £50k and 25% for profits over £250k, with a tapered rate in between. Incorporation often becomes tax-efficient for landlords paying higher/additional rate income tax due to Section 24.
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Learn UK Corporation Tax rates for buy-to-let companies (19%-25%) and discover when incorporating a property portfolio becomes tax-efficient compared to sole traders.
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