The Ultimate Guide to Property Tax & Accounting: From Setup to Tax Savings

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📈 Are you a property investor in the UK confused about property taxes, Section 24, and limited companies? This detailed guide will walk you through everything you need to know to manage your tax bills effectively, set up your property business for success, and maximise your profits!
What You’ll Learn in This Video:
🏡 1. How to Invest in Property - Own Name vs Limited Company
• Should you buy in your personal name or through a limited company?
• The pros and cons of both strategies, including tax efficiency.
• Understand the impact of Section 24 Mortgage Interest Relief restrictions, which limits tax relief for landlords with rental income.
• Compare Income Tax rates (20%, 40%, 45%) with Corporation Tax (19%-25% in 2024).
If you’re unsure which structure works for you, this section breaks it down clearly and simply.
🏢 2. Setting Up Your Limited Company
• Learn about different ownership structures:
• Simple Limited Company with one class of shares.
• Alphabet Shares for flexible dividend distributions.
• Group Structures with holding companies and SPVs (Special Purpose Vehicles) for larger portfolios.
📊 3. Running a Property Investment Limited Company
• Taxes You’ll Pay:
• Corporation Tax at 19% for small profits up to £50,000, rising to 25% for higher profits over £250,000.
• Allowable Expenses:
• Mortgage interest (fully deductible in a limited company).
• Repairs, management fees, property insurance, and refurbishment costs.
• Professional fees, such as accountants and legal costs.
• Learn how to keep your accounts and tax returns compliant with Companies House and HMRC.
💰 4. Putting Money Into Your Limited Company
• Discover how to fund your company using personal savings or profits from other businesses.
• Learn the rules around inter-company loans and the importance of formal agreements.
• Find out how loans can provide short-term flexibility without triggering unnecessary tax charges.
💸 5. Extracting Money From Your Property Company
• Tax-Efficient Salaries: Pay yourself up to the £12,570 National Insurance threshold to reduce liability.
• Dividends: Make use of the £500 dividend allowance and benefit from lower tax rates:
• 8.75% for basic rate taxpayers
• 33.75% for higher rate taxpayers
• 39.35% for additional rate taxpayers.
• Other options, such as receiving loan repayments or interest, can also be explored to withdraw money efficiently while keeping tax low.
🎯 Who is This Video For?
• Buy-to-Let (BTL) and BRR (Buy, Refurbish, Refinance) investors.
• New landlords and experienced property investors looking to navigate the UK tax system.
• Anyone struggling to understand Section 24, tax-deductible expenses, or how to optimise their business structure.
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💬 Got Questions? Drop them below - we’ll be happy to help!

[@bphillips243]

Great video! If you have loaned money to the company to purchase a property and you are charging interest on the loan. Does this count as a trading loan? I.e interest is able to be offset against all trading profits rather than as an NTLR? Thanks!

[@ckim3374]

Thank you so much for another excellent content and I gain lots of knowledge from your content. Could you kindly confirm if this first time buyer relief rule is still valid now please?