9 Crown Row, Bracknell, Berkshire, RG12 0TH
Hannah Stinga
Senior Lettings Manager
Hannah started her career in estate agency at the age of 19 working in Maidenhead and has more than 20 years’ experience in all aspects of Lettings. Outside of work she likes to keep active, is a keen traveller and loves spending time with family and friends.
What do you like best about your job?
Building relationships with clients and helping staff develop their careers.
What might someone be surprised to know about you?
I am half Italian, hence the hair and height.
Guilty pleasures?
Shopping and eating chocolate!
My worst fashion mistake was…
A Rebock tracksuit and matching trainers!
The person I’d most like to go for a drink with is…
Sarah Jessica Parker.
On Sunday mornings, you can usually find me…
In bed with my cats Koki & Kiki.
10 Feb 2025
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages. Here’s a breakdown:
Sole Name (Individual Ownership)
Advantages:
- Simplicity: Easier to set up and manage without the need for company accounts or additional legal structures.
- Flexibility: Direct control over the property and rental income without corporate constraints.
- Lower Initial Costs: No incorporation fees or ongoing compliance costs associated with running a company.
Disadvantages:
- Higher Tax Rates: Rental income is taxed at personal income tax rates, which can be as high as 45% for higher rate taxpayers.
- Mortgage Interest Relief Restrictions: Section 24 restricts mortgage interest relief for individual landlords, meaning you can’t offset mortgage interest against rental income.
- Personal Liability: Personal assets are at risk if there are legal claims or debts related to the property.
Limited Company Ownership
Advantages:
- Tax Efficiency: Rental income is taxed at corporation tax rates (19-25%), which can be lower than personal income tax rates.
- Mortgage Interest Relief: Full mortgage interest can be offset against rental income, reducing taxable profits.
- Inheritance Tax Planning: Shares in the company can be passed to heirs without incurring stamp duty.
- Asset Protection: Limited liability protects personal assets from claims related to the property.
Disadvantages:
- Higher Initial Costs: Incorporation fees, ongoing compliance costs, and potential accounting fees.
- Complexity: Requires maintaining company accounts, filing annual returns, and adhering to company law.
- Limited Mortgage Options: Fewer mortgage products available for limited companies, and interest rates may be higher.
Ultimately, the best choice depends on your individual circumstances, including your tax situation, investment goals, and willingness to manage the administrative responsibilities of a limited company. Consulting with a financial advisor or accountant can help you make the most informed decision.
If you’re considering purchasing a buy-to-let property, or you have any property or mortgage-related questions, please do get in touch to arrange an appointment with the team at Mortgage Required.
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