When it comes to growing a property portfolio, it’s not just about what you buy—it’s about how you hold it. More and more experienced investors in the UK are shifting away from owning property in their personal names and opting instead for a more structured approach: the property SPV.
Set up spv property limited company formation specifically to buy, hold, and manage property. While it might sound like a concept reserved for large-scale investors, it’s becoming increasingly popular among landlords with just a few properties too—and for good reason.
If you’ve been wondering whether it’s worth making the switch, here are five reasons why savvy investors are choosing the SPV route.
1. Tax Efficiency
Tax has been a major driver behind the shift to SPVs. For landlords who own property personally, rental income is taxed as part of your regular income—potentially pushing you into the higher or additional tax bands. Plus, since 2020, mortgage interest is no longer fully deductible for individuals, which has hit some landlords hard.
With an SPV, profits are taxed under Corporation Tax rates, which (depending on the size of your profits) can be significantly lower than personal Income Tax. What’s more, mortgage interest remains a fully deductible expense for companies, making it a more appealing structure for those with finance-heavy portfolios.
It’s not a guaranteed saving for everyone, but for many, the numbers work out more favourably when the property sits inside a company.
2. Streamlined Estate Planning and Inheritance
Passing on your property to family can be complex and expensive if held personally. With an SPV, you’re not passing the property directly—you’re passing shares in a company. That can make things far easier when planning for inheritance.
You can also structure share classes to give family members different types of rights—maybe income now for one child, ownership later for another. It adds a layer of flexibility that simply isn’t available when owning property personally.
3. Cleaner Finances and Legal Protection
Running your property business through a company means you can separate your personal and business finances. That clarity can be a blessing—especially when you’re juggling multiple properties, expenses, and sources of income.
From a legal standpoint, the company is its own entity. So if something goes wrong—say, a tenant takes legal action—your personal assets are more protected. That peace of mind alone is often worth the switch.
4. Better Access to Buy-to-Let Lending
In the past, getting a mortgage through a limited company was a niche affair. That’s no longer the case. A growing number of lenders now offer buy-to-let mortgage products tailored specifically to SPVs. The rates are often competitive, and lenders understand the structure well.
Plus, once you’ve built a track record within your SPV, it can actually be easier to raise finance for future acquisitions—especially if the business shows healthy profits and good management.
5. You’ll Look More Professional
When you’re looking to grow your portfolio or work with others, appearances matter. An SPV for property gives your business a more polished, credible front. It signals that you’re not just dabbling—you’re building something long-term.
It can also make things easier when partnering with others. Want to invest with a friend or relative? Doing so through a company allows you to define each person’s shareholding clearly and handle distributions through dividends rather than fuzzy handshake deals.
Conclusion
There’s a reason the SPV structure is becoming the default for serious property investors. It offers greater tax flexibility, cleaner finances, and a more professional setup—without locking you into something you can’t manage.
If you’re thinking bigger with your property portfolio, it might be time to stop treating it like a side hustle and start running it like a business. And for many, a well-structured property SPV is the perfect way to do just that.
Future-Proofing Your Practice: Why Modern Firms Are Switching to Engagement Letter Software
The accounting profession thus stands at a crossroad where old practices meet technological innovations. As client expectations change and competition becomes fiercer, nimble firms are exploring every aspect of their business-from engagement letters, which were once mere reminders of compliance, but have now become strategically considered in the client relationship journey via specialised engagement letter software for accountants allows a bureaucratic process to become a client-centric experience.
Client Expectation Evolution
In this respect, both individuals or corporate accounting clients interact with one sophisticated digital platform or the other for any aspect of their lives. The jarring disconnect occurs when they are faced with paper-based processes in their professional relations. For instance, third-party clients expect an accounting firm to offer solutions that are as convenient, quick, and transparent as the ones offered by other service providers.
Engagement letter software provided a digital alternative that did not really have any hiccups in meeting their expectations of how clients like to do business. Printing, signing, scanning, and mailing documents are slowly fading away for firms that are forward-thinking and client-centric.
The Needs to Comply
Accounting services are getting regulated more and more nowadays, regarding documentation, requirement specifications, and content. Paper-based engagement letter systems are inefficient at ensuring that all letters are easily updated with the latest required language or disclosures. The exposure that creates deficiency can easily be solved through technology.