Can I Sell My House To My Limited Company? Uk Guide!

I’ll walk you through the precise legal framework that governs selling your house to your own limited company in the UK. While this property transfer strategy can reveal significant tax advantages and corporate benefits, there’s a complex web of HMRC regulations, Land Registry requirements, and potential financing hurdles that could derail your plans if you don’t navigate them correctly. The specific documentation you’ll need and the exact sequence of steps matter more than you might realize.

Key Takeaways

Yes, you can legally sell your house to your own limited company in the UK with proper documentation and compliance.
You must obtain an independent property valuation and pay SDLT with a 5% surcharge on market value.
Directors need formal company resolution and qualified conveyancing solicitors must represent both parties in the transaction.
Corporate ownership offers tax benefits including 100% mortgage interest deductions and lower corporation tax on rental profits.
Company mortgages have stricter lending criteria, so engage a whole-of-market broker for suitable financing options.

Legal Requirements for Property Transfer to Your Limited Company

When you’re transferring property to your limited company, you’ll face several mandatory legal requirements that can’t be bypassed or simplified. You’ll need to complete a TR1 transfer deed form and register it with HM Land Registry to update the property title. A qualified conveyancing solicitor must handle this process, conducting essential checks and ensuring regulatory compliance. Additionally, it’s important to remain proactive in the face of potential delays, as clear communication with your solicitor can help mitigate issues related to property delays.

Your limited company needs proper incorporation with Companies House, plus memorandum and articles of association permitting property ownership. Directors must pass a formal resolution approving the transfer. You’ll also need to provide evidence of your company’s authority to hold property. The company’s legal separation from its shareholders means the property will be owned by a distinct entity, which affects liability and financial arrangements.

The legal documentation process requires precision—any errors can delay completion or create costly complications that affect your business plans.

Market Valuation and Pricing Obligations

Accurate property valuation forms the cornerstone of your company transfer, directly impacting every tax calculation and compliance requirement you’ll face. You’ll need a formal assessment from an independent valuer or RICS-certified surveyor to establish market worth at the transfer date. HMRC requires this market value declaration for both SDLT and Capital Gains Tax calculations, regardless of what you actually pay your company.

While you can legally transfer your property for any price—even £1—tax calculations will still use market value. Your valuer will examine recent sales of comparable local properties to determine fair market worth under arm’s-length transaction standards. This valuation becomes essential because SDLT applies on whichever is higher: your actual purchase price or the property’s market value. Getting this right protects you from HMRC penalties. A thorough property survey can also help identify any issues that may affect the property’s value.

Beyond tax calculations, proper valuation supports your estate planning objectives by establishing a clear baseline for future wealth management and succession strategies within your corporate structure.

Tax Implications and Financial Consequences

Beyond establishing your property’s market value, you’ll face a complex web of tax obligations that can dramatically alter your transfer’s financial viability. I’ll need to pay SDLT with a 5% surcharge on the property’s market value, plus potential 3% additional residence charges. However, incorporation relief can defer my CGT liability by rolling gains into company shares—a significant advantage when facing residential CGT rates of 18-28%. Additionally, buyers should always budget for hidden costs that can arise unexpectedly during the transaction process.

The corporate structure offers compelling benefits: rental profits face corporation tax at 19-25% instead of income tax reaching 40%. Future property sales incur corporation tax rather than higher CGT rates. Yet I must consider dividend taxation (8.75-39.35%) when extracting profits, creating a double-taxation scenario that requires careful planning to optimize my overall tax position. Additionally, the company can claim 100% mortgage interest deductions against rental income, unlike personal ownership where Section 24 restrictions limit such deductions.

Financing Options and Mortgage Considerations

Having calculated the tax implications, you’ll need to secure financing for your property transfer—a process that differs greatly from standard residential mortgages. Your limited company will face stricter lending criteria than individual applications, with lenders scrutinizing company financials, property viability, and your personal creditworthiness. Additionally, understanding market trends is crucial, as it influences the potential profitability of your investment.

I’d recommend engaging a whole-of-market mortgage broker who understands commercial underwriting requirements. They’ll navigate specialist lenders offering flexible terms tailored to investment properties, as high-street banks often enforce rigid eligibility standards. Companies without established trading history may find lenders particularly reluctant to approve mortgage applications.

You can use existing property equity as your deposit or source funds from personal savings. The significant advantage? You’ll deduct 100% of mortgage interest from rental income, reducing Corporation Tax liability—something individual landlords can’t fully achieve due to Section 24 restrictions.

Step-by-Step Transfer Process

Once you’ve secured financing and completed your tax planning, the actual transfer process follows a structured sequence that mirrors standard property transactions with several crucial differences.

First, I’ll obtain a professional property valuation to establish market value – this protects you from HMRC scrutiny. It’s important to consider how home extension costs can impact overall property value. Next, you’ll need separate solicitors representing both parties, even though you’re fundamentally buying from yourself. Your conveyancer will draft contracts, conduct searches, and handle the legal framework. An independent solicitor must provide professional guidance before you sign any conveyancing mortgage documents to ensure you understand all mortgage conditions.

The company must pay Stamp Duty Land Tax within 14 days of completion, calculated on the purchase price. Don’t forget this critical deadline – penalties apply immediately.

Finally, complete the transfer by exchanging funds, keys, and submitting Land Registry applications. The entire process typically takes 6-8 weeks, assuming no complications arise during conveyancing.

Benefits of Moving Property Into Corporate Ownership

While the transfer process requires significant upfront investment and planning, corporate ownership delivers substantial long-term financial advantages that justify this initial complexity.

You’ll immediately benefit from the 19% corporation tax rate versus income tax rates reaching 40%. This becomes essential as Section 24 restrictions now limit mortgage interest relief for individual landlords—a problem you’ll completely sidestep through corporate ownership. Moreover, recent changes in property rights, such as the Leasehold Reform Act, may also enhance your investment opportunities as a corporate owner.

I can structure your existing property equity as a director’s loan, eliminating new deposit requirements while creating tax-efficient withdrawal options later. Your retained profits stay within the company, deferring personal tax while funding portfolio expansion.

You’ll gain operational flexibility through predictable corporation tax payments and centralized accounting. Dormant companies can maintain property holdings indefinitely without requiring active trading operations. Most importantly, you’re building a scalable business foundation that transforms single-property ownership into genuine wealth accumulation through strategic reinvestment opportunities.

Conclusion

I’ve covered the essential technical requirements for transferring your property to your limited company. You’ll need proper legal documentation, independent valuation, and careful tax planning to execute this correctly. The process isn’t straightforward, but it’s achievable with the right professional support. Weigh the corporate ownership benefits against the costs and complexity. If you’re confident the financial advantages justify the effort, start by engaging a qualified conveyancing solicitor who understands corporate property transfers.