SPV’s Companies

SPV’s also known as a special purpose vehicle limited company. It’s a special company that is commonly used to purchase buy-to-let properties in the United Kingdom. SPV companies are used only for buy-to-let and do not carry out any other form of trading. If you are planning to buy a property under a limited company, a Mortgage lender will usually request you set up a separate limited company ( SPV), as they will not allow you to get buy to let property under a trading company.

There are several tax benefits available, e.g

– If you are a high rate taxpayer ( 40%, the company on the rental income will only pay 19%(2018/2019) corporation tax.

– If you take dividends of up to £2,000 a year, there will be no extra personal tax to pay. – You will be able to reinvest any retained profits without paying any Personal tax as long as you buy any future property under the same company.

– You will be able to expense the finance cost which includes the mortgage interest under SPV.

As an experienced landlord accountant in London, we closely work with many landlords and have helped them to set up SPV.

If you are looking to buy the properties under a limited company, we can assess your personal circumstances/tax position and can guide you in the right direction. Our fee to set up an SPV only starts from £100 plus vat, whereas year-end accountancy fee for SPV starts from £800 plus vat per year.