Should You Put Your Properties Into a Limited Company? #OmarAswat #ASWATAX

Why It Matters

The decision affects cash flow and long-term tax efficiency: keeping rentals in a company can preserve capital for growth and reduce tax for high-rate taxpayers, while transferring income-earner properties can increase personal tax burdens. Careful planning prevents costly mistakes and aligns ownership structure with financial goals.

Summary

Tax adviser Omar Aswat says moving properties into a limited company depends on the owner’s objectives rather than being a default choice. If rental income is needed for day-to-day living, transferring into a company can be disadvantageous due to corporation tax plus dividend taxation, creating effective double taxation. Conversely, if rental income is surplus and intended to be retained and reinvested, a corporate wrapper can be tax-efficient because corporation tax (19–25%) may be lower than personal rates for higher earners. He emphasizes assessing objectives before deciding to incorporate property holdings.