Guide to purchasing a house through your limited company

Guide to purchasing a house through your limited company

With the start of 2023 seeing a whopping 5.6 million small businesses operating in the UK, we think it is only fair that you have all the information you need about how being a proud business owner can help you climb the property ladder.

Many businesses think about buying a property through a limited company as a way to generate additional income. While this is a great idea, especially when thinking about paying Corporation Tax and Income Tax, there are many other ways to utilise buying a property as a business owner.

Our in-depth guide looks at how you can buy a house through your limited company and reap the benefits of renting it out, selling it for a profit or even living there. We’ll explore the benefits and drawbacks and ultimately answer your curiosity about how to do it.

Keep reading to learn exactly how you can buy a property through a limited company, or contact us today to discuss your mortgage needs.

Is it worth buying property through a limited company?

Buying property through a limited company isn’t something every business owner thinks (or knows) about. However, it can be very beneficial for your personal finances when considering the tax implications involved.

Depending on how you use the property, whether that’s buying a home for you or your family members, an investment property to flip and sell or a residential property to gain additional revenue, there are many benefits to buying property through your limited company.

Benefits of buying property through a limited company

Are you curious about the perks of buying a property through your limited company? Well, the good news is that you can benefit in many ways, from making better tax savings to gaining more security for your future.

Buying a property through a limited company can help you:

  • Make more tax-efficient savings
  • Secure your personal assets
  • Increase your income
  • Simplify the accounting process if you are looking for an investment
  • Pass on assets to loved ones without huge tax liabilities
  • Deduct the mortgage interest payments as a business expense

Drawbacks of buying property through a limited company

We want you to thrive in your new property venture. So, while there are many benefits to purchasing property through a limited company, there can also be some drawbacks.

Some of the things to consider before purchasing property through a limited company:

  • You need to know your taxes or hire an accountant to help
  • There may be additional admin involved
  • You need to be careful when using property for personal use
  • Stamp Duty Land Tax is usually higher when purchasing through a limited company
  • Selling a property through a limited company makes you liable to pay Capital Gains Tax (CGT)
  • Business mortgages may have higher interest rates than traditional mortgages

What are the tax savings when buying property?

If you are looking to buy a property through your limited company, then it might just be the right decision on the tax front. Buying a property through a business can come with some attractive tax benefits, depending on how you plan to use it.

Let’s take a look at some of these benefits in more detail.

Corporation Tax

If you are planning to buy a residential property as a buy-to-let investment, then purchasing it through your limited company can have positive tax implications on your rental income. This is because private landlords are required to pay Income Tax on their rental income – which is taxed at a higher rate than if you were to pay Corporation Tax.

So, ultimately, you may be able to pay tax at a lower rate.

Income Tax rates:

  • Earnings below £12,570 = no tax due
  • Between £12,571 and £50,270 = 20%
  • Between £50,271 and £125,140 = 40%
  • Earnings over £125,140 = 45%

However, any rental income earned through limited companies will be taxed between 19% – 25%, which is the current Corporation Tax rate.

Inheritance Tax (IHT)

If you’re planning ahead, then holding your property in a limited company may help you when it comes to passing on assets to your loved ones. You’ll have better security and greater flexibility.

Properties held through limited companies are seen as company assets. This means that when passing them over to beneficiaries, they will not be subject to the hefty IHT rates that would typically come with privately owned properties.

Can I buy a house through my limited company and live in it?

While the prospects of additional income are certainly intriguing for most business owners, some may be looking for a more personal reason to purchase a house through their limited company.

If you want to buy a home for you or your family members to live in, the good news is that it is certainly possible. However, there are many tax and legal considerations to think about, as it differs from buying an investment property.

As well as the tax implications, you’ll want to think about how much control you’ll have over the property if other shareholders are involved, what would happen in the event of a company dissolution and whether it could be more difficult for you to get a mortgage.

How to get a mortgage for a limited company

While getting a mortgage for a limited company is slightly different from getting a traditional mortgage, it is easier than you might think.

  1. Speak to a professional mortgage broker – as experts in the field of mortgages and with a wide source of connections, at Bliss Financial, we can help you find the right specialist lender.
  2. Prepare company documents – including company accounts, financial documents and your personal financial information.
  3. Affordability checks – this involves a credit history check and assessment of the company’s financial stability.
  4. Provide a personal guarantee – most lenders will want to see that you are personally liable for the mortgage repayments regardless of the company’s situation.
  5. Submit your application – provided all the checks are good and your mortgage broker agrees you can afford the mortgage, it is time to submit the application.

How much deposit do I need to buy a house through a limited company?

Buying a house through a limited company tends to require a higher deposit than buying as an individual, ranging from 25% to 40%. The level of deposit can vary depending on numerous factors such as your company’s financial situation, the level of risk lenders see the loan as, lender requirements and whether you have a personal guarantee.

Get in touch with Bliss Financial today

Are you considering buying a property through your limited company? At Bliss Financial, we’re helping property investors and individuals find the best limited company mortgages with favourable interest rates.

We’ll advise you on the best type of mortgage to opt for and handle the paperwork, too. You’ll have more time to focus on the more exciting side of your new property venture.

Talk to a member of the team today to find out more about our services.


Ultimately, if you are looking for an alternative way to purchase property instead of the traditional methods, then doing so through your limited company can be a good idea.

When done strategically, buying a property through a limited company can have potential tax benefits, flexibility in profit distribution, and not to mention an extra layer of protection for you and your family’s future.

However, it may not be for everyone, so make sure you explore all potential options and possibilities and figure out exactly why you want to buy a property through your company. Do you want to make additional income? Are you looking for long-term financial security? Or do you simply just want to live there?

Then, once you are ready to get a mortgage, our experienced brokers will be available to help!

Picture of Amanda Marsden
Amanda Marsden

Amanda is the founder and owner of Bliss Financial. She has been helping clients with their mortgage and insurance needs for over 15 years. Her passion is to fully explore the options open to them and ensures the process is easy with no stress. She also specialises in helping clients invest in buy to let property and landlords.

Contact Amanda

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Selected from a number online because they stated that they have experience working with people from the military. This was essential given how moving on assignment often can be a negative for many banks when it comes to lending. Amanda was excellent and the process was swift and easy. We had planned to visit face to face but the process was just as high quality over zoom and phone.
Richard S.
Amanda is great, everything was explained clearly and always responsive to queries, would highly recommend.
Pavitar P.
This is my second time remortgaging through Bliss and Amanda. The service provided has made my life stress free and Amanda was thorough with her research into what deal and term would be best for me based on economic uncertainty and where I am atthis point of my life.I'd not use any other mortgage broker ✨
Harriet L.
Amanda was extremely knowledgeable and helpful from minute one. I am very grateful to her for diligently working within a fairly tight timeframe to identify and provide me with the right product.Her communication throughout was prompt and well-received. I look forward to using her services again.
James D.
Excellent service. Fully deserving of 5 stars. Nothing to fault. Great communication and everything went through in time with no issues. Would highly recommend Amanda Marsden.
Luke H.
Amanda was absolutely brilliant from start to finish. She helped us secure our forever home mortgageWould 100% recommend for anyone needing financial services of any kind!
James B.
Absolutely perfect service from start to finish, no stress, no hassle can’t recommend enough. Thankyou
sarah W.
We have used Amanda for many years. She knows exactly what she is talking about and offers the best advice. I cant recommend Amanda enough if you're thinking of getting a mortgage or going through a Re-Mortgage. She reassured us throughout the whole process and was in touch every step of the way. Thank you Amanda, here's to many more years.
David J.
Amanda was amazingly helpful and made the whole process hassle free. Even when I changed my mind a few times nothing was a problem and the end result was exactly what I was looking for. I would highly recommend Amanda and the team
Atha D.
We used Amanda a few years ago for our first mortgage. She was an absolute hero for us. She sat us down and explained everything thoroughly putting all out worries at ease as first time buyers. We had issues with our chain which meant our mortgage offer lapsed and Amanda was there every step of the way right through to the day we moved in. Due to remortgage in the next year or so and I will always go back to Amanda.
Anya K.
Once again very helpful and prompt in helping us with remortgaging our property, highly recommended
Natasha G.
Bliss WILL get you the best mortgage solution possible. The best mortgage broker around!!
michaela M.
Amanda was absolutely brilliant from start to finish. She helped me secure my first mortgage and also helped with organising the best deals on life and home insurance for my house. Would 100% recommend for anyone needing financial services of any kind!
Nathan C.
We specifically selected Bliss as financial advisors for our mortgage, as we'd read great reviews from other first time buyers. Amanda was so welcoming and helpful, introducing us to the whole process. We actually went to her thinking we were fish out of water, and wanting to but not expecting to but for a few years, just wanting to get our heads around it. However everything felt easy, quick and well explained and we were accepted for a within approx 2 months of starting our search. Amanda has been amazing throughout the entire process - even personalising the way she presented documents to us to suit our styles (me, needing to talk everything out and my partner more graphs and charts!). Evening appointments were organised to work around our work schedules. She was in constant communication with all stakeholders, chasing things up for us and since moving, also supporting with insurances. I'd highly recommend Bliss, and specifically Amanda for any financial advisory services however particularly first time buyers, as no question feels like a silly question. For future purchases, selling, and any other financial services - we will definitely return to Bliss.
Amber B.
Great service. Professional, friendly and efficient. Amanda did a great job in advising me and then finding and securing the best mortgage to suit my situation
Ed T.
Absolutely amazing service, couldn't have received any better. Very friendly and quick at replying to all enquiries. Very understanding of our circumstances which were difficult but still got us everything we needed for our new house. Thank you again Amanda, will be recommended you to everyone who needs a mortgage broker ☺️
Stacey G.
Amanda helped us to secure our first mortgage. She was on hand for support all the way through the process and very helpful in explaining things in a more simple way to help us to understand. She kept in contact with us regularly throughout the process and really made us feel at ease. We cannot thank Amanda enough for her support and help.
Annise M.
I came across Bliss financial solutions by google search when desperately trying to find a mortgage advisor who could do the impossible (secure a DiP quickly, that met my difficult short term self employment circumstances).Amanda from Bliss has been a pleasure to work with. The perfect balance of professional and friendly, incredibly organised and certainly not deterred by a challenge. I’m really grateful for the time and effort she put into my case to allow me to secure the house I wanted within the mandated timeframe. Thank you so much Amanda and Bliss for allowing us to get our new home 💜
heather U.
I just want to say how amazing Amanda at Bliss financial is!!. My partner and I were looking at buying a shared ownership prooerty and everything started happening very quickly ... but Amanda just took over from the start and literally kept me at ease the whole way . Herprofessionalism throughout was second to none and helped with every aspect of the process. Thanks to Amanda we now have the most beautiful home and we will be forever grateful for everything she has done for us. I would 100% recommend Bliss Financial.
charlotte C.
Excellent service. Amanda really took the stress out of remortgaging for us. Highly recommended
Amy G.
Switching mortgages has always been a frustrating and time consuming experience but using Bliss made the process seamless and most importantly stress free! They were excellent and I would highly recommend their services.
Neil G.
Amanda has been totally invaluable through our first home buying journey. Always on hand to answer the hundreds of questions with her excellent knowledge and guidance.I would absolutely recommend Bliss Financial Services.
Matt D.
We have been in our new house for nearly 2 months now all thanks to Bliss Financial Solutions, Amy was amazing sorting our new mortgage out and talking us through everything we needed to know. Very smooth process with good communications. Thank you very much. 🙂
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Exceptional customer service, professionalism and market knowledge.
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Really excellent & supportive service from start to finish throughout mortgage process, from initial enquiry through to successful completion, friendly, knowledgeable and always happy to take time to answer any questions - great organisation.
Nella F.
Brilliant lady Amanda, always positive knowledgeable and helpful. Have no doubts in recommending her and Bliss Financial Solutions
Jeff W.
Very prompt and professional team. Helped us out no end! Highly recommended
Wayne C.
I would like to thank Bliss Financial Solutions for amazing, professional and swift responses during the process of my first home purchase.It has been an absolute pleasure each time I have met you and will 100% have no hesitation for contacting you again for future requirements and highly recommending you.
Paul K.
We have recently used Amy at Bliss to help us get a mortgage. After having a stressful time at high street banks and other mortgage brokers, we contacted Amy for help. Amy was absolutely excellent and the work she does is outstanding. Amy went above and beyond and managed to find us a mortgage in a matter of days. Throughout the whole process Amy kept us up to date and managed the mortgage application seamlessly despite a stressful time with other companies. I would like to express my many thanks to Amy and the team at Bliss for being so excellent and thanks to them we now have the keys to our new home.
My experience with Bliss Financial was excellent, everyone went above and beyond. Provided the best advice and more. Our mortgage was sort with out any stress. I will continue recommending to friends a family looking for mortgage advice.
emma W.
First class customer service, highly recommend Bliss Financial Solutions LTD to anyone that values a professional, efficient and personal approach. Being first time buyer my partner and I had very limited knowledge around mortgages and all things connected. Amanda and her team went above and beyond to ensure we understood everything and provided advice when we had any questions with immediate response. Bliss financial limited we thank-you kindly for making the whole mortgage process so easy, you took all the strain off us especially need due to the birth of our daughter 3 weeks ago you made the mortgage process easy and hassle free. I will definitely be a customer for life and if there is anyway I can share your company’s profile on social media please let me know as I would love to recommend your service to others.Many thanks Melissa Hodgson, Andrew and Eloise - three very happy customers 😊
Melissa H.
Amy and the team were absolutely amazing! Nothing was too big. We didn't really know much about the process and Amy explained everything so we fully understood! We couldn't have done it without the team 100% would recommend to anyone! Thank you all so much ❤️
Rebekah F.
We used Bliss to re morgage our property. Amy was absolutely fantastic, made everything feel really easy, she was clear in all her explanations, open and honest with setting expectations, and really knowledgeable. The whole process was really smooth. We also discussed life insurance which was something of a priority giving we had just had a little boy recently. Amazing service. Would highly recommend. We will definitely be using again for any future mortgage or insurance needs.
Lauren A.
Excellent service, they really came to the rescue after being messed about by our current lender, amazing absolutely amazing. Just wish we went to them sooner would have saved a big headache 😃
Michael C.
Efficient and friendly. The team helped source the most appropriate mortgage for us at a very busy and pressured time for interest rates and timeframes. They were very helpful in expediting the completion when our solicitors were holding up proceedings. The little gift afterwards was much appreciated also. Would recommend.
Kirsty T.
Bliss Financials was a vital part of my journey to home ownership in the UK. They always gave personalized yet professional advice and were always accessible and responsive all through the process. They were very thorough, transparent and client centered; offered and discussed all the available options to enable me make an informed choice. I would totally and wholeheartedly recommend their services and I am very grateful to Amy who handled most of the process as well as Amanda and Sophie. Great team/firm!
Nwosa C.
I would like to praise the excellent service of the Bliss Financial Solutions LTD.I have a brilliant experience with this company. I was buying a house for the first time and Bliss Financial advised me on every step of the process (mortgage, insurance), offering me suitable options that I could choose from. I always got great offers and still was in control.All members of the team (Amy, Sophie, Amanda) are brilliant, very professional, friendly and responsive.I am very grateful to Amy (my consultant) as she did help me very much throughout the process, nothing was a problem,I received responses straight away and she also prompted other parties to act swiftly (lender, insurance companies, solicitor, etc.).If I need mortgage or insurance in future, I will definitely ask Bliss Financial for help again.
Michal P.
I am now on my second mortgage which was arranged using Bliss. What an outstanding service. From start to finish the Bliss team were great in answering queries that I had. They even pushed to get me an extension to my offer seeing me secure a great rate before the recent rises. This certainly helped me secure my dream home. I would recommend Bliss to anyone who is after a professional and personable mortgage advisor.
Amanda worked extremely hard and was really efficient is securing a fixed deal for me at a time when rates were being removed across the board. I would recommend them to anyone.
Andrew M.
Excellent from start to finish. Every decision and option were made clear to us about the implications and any questions we had were answered in a timely manner, making remortgaging easier than I imagined it would be. Thank you to Bliss Financial Solutions for excellent service and attention to personal details that really made us feel like our priorities were put first. We will use again at our next remortgage and would recommend to anyone.
Melissa B.
Excellent company, fast and responsive and a professional outfitI appreciate Amy’s swift advice on a deal to secure a good rate 12hrs before the rate changed
Adam L.
What a fantastic service. I contacted Amanda via a friend recommendation. She was friendly and helpful. She passed me to Amy who was my advisor for the whole process.As a first time buyer, I was like a rabbit in the headlights. But Amy reassured me and made the whole thing a breeze, with regular contact and updates along the way.Thank you to you all.Highly recommend 😁See you when it's time to remortgage 😉
Steven R.
We have used Bliss/Amanda for a number of mortgages now and the service has always been second to none!We have had complicated financial situations that the Bliss team have used their extensive knowledge to support and ensure we receive the best product for us.We always recommend Bliss to all our friends and family!Thank you to Amanda, Amy and Sophie
Samantha B.
The staff are amazing and very helpful throughout the whole process, the rates are very competitive and the after sales service is second to none, I would highly recommend Bliss Financial to anyone.MarkAspire Property Rentals
Mark L.
Any Lyons found us an excellent mortgage deal and then helped us through a long complex legal process regarding the house. She was there for us all the way through keeping us informed and chasing up when there were delays, Thank you Amy and her team.
Ken W.
Amy has been amazing from the start of our process as first time buyers until completion. We had a few delays along the way due to waiting on a new build but Any was there to guide us through every step of the way to help us rearrange another mortgage and kept us regularly updated on the process. I have already recommended her to friends and family and wouldn’t hesitate to use her again when we remortgage.
Melissa N.
Really happy with the service from Amy and Bliss Financial Solutions - Amy made sure everything was as straight forward as possible, was super communicative and really easy to deal with. Would not hesitate to recommend them.
Rachael G.
Amanda was very helpful. Gave advice over a number of options for my situation. Many other companies didn't even bother calling me back. Will definitely go back to Bliss again in the future.
Lesley C.
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