Buying UK property in your own name or through a company: which suits GCC investors?

A decision to make before you reserve

Every UK purchase can be made in your own name, alone or jointly, or through a UK limited company set up only to hold property, often called a special purpose vehicle (SPV). Both routes are open to GCC nationals living in the Gulf.

The choice affects the tax on your rent, which mortgages you can get, how money reaches you, and what happens when you sell or pass the property on. Changing it later is expensive, so it is best decided before each purchase.

Stamp Duty: often the same either way

A company always pays the 5% surcharge on residential purchases, and a UK company controlled by people who live outside the UK also pays the 2% non-resident surcharge. Most GCC investors who own a home in the Gulf pay both surcharges in their own name too, so for them Stamp Duty is usually the same on either route.

The exception is a buyer who owns no other home anywhere in the world: in their own name, they avoid the 5% surcharge. Homes priced above £500,000 bought by a company can also face a much higher flat rate and an annual charge (ATED), unless the company qualifies for relief as a genuine letting business. Your solicitor and accountant claim these reliefs.

Tax on rental profit

• In your own name: from 6 April 2027, rental profit is taxed at 22%, 42% or 47%. Mortgage interest is not deducted from the profit; you receive a tax credit worth 22% of it instead. Many non-residents are not entitled to the personal allowance, so tax can start from the first pound.
• In a company: corporation tax is 19% on profits up to £50,000 and 25% above £250,000, with a sliding rate in between. Mortgage interest is deducted in full, like any other cost.
• The more you borrow and the larger your portfolio, the more the company route tends to save.

How money reaches you from a company

Profit made inside a company belongs to the company. It reaches you in one of three ways:

• Repaying your loan: most investors fund the purchase by lending their own money to the company under a written director’s loan agreement. When the company repays that loan, it is your own money coming back, so it is not taxed.
• Interest on your loan: the company can pay you interest on the loan, which reduces its taxable profit. Under some tax treaties — the UK–Kuwait treaty, for example — interest paid to a resident of the other country is generally taxable only there, provided the rate is commercial and HMRC has approved the treaty claim. Until then, the company deducts 20%.
• Dividends: paid from profit after corporation tax. UK tax on dividends paid to non-residents is generally limited, and GCC countries do not usually tax personal income.

Mortgages

Many specialist lenders who work with overseas investors are set up to lend to property companies, and some prefer it. Directors are usually asked for a personal guarantee, and rates and fees can be slightly higher than for individuals. Our FCA-regulated partner broker compares both routes for your situation.

Running costs and paperwork

• In your own name: one UK tax return a year, with rent paid under the Non-Resident Landlord Scheme.
• In a company: annual accounts and a corporation tax return, Companies House filings, identity verification for directors and a UK business bank account. Accountancy fees are higher than for a personal return, which matters more for a single, small property.

Selling and passing on the property

When an individual sells, they pay capital gains tax at 18% or 24% and must report the sale within 60 days — see our guide to selling from the Gulf. A company pays corporation tax on the gain instead, through its normal tax return.

A company does not remove UK inheritance tax: shares in any company, UK or overseas, that holds UK homes are treated as UK assets. A company can, however, make it simpler to share ownership across the family through shares — see our inheritance tax guide.

Which route usually suits whom

• Your own name often suits: one or two properties bought with cash, buyers who own no other home, a home bought for a student child in the child’s own name, and investors who want the simplest set-up.
• A company often suits: mortgaged purchases, investors building a portfolio of several properties, investors who want to reinvest rent into further purchases (profit kept in the company is only taxed at corporation tax rates), and families who want to share ownership through shares.

Switching later is costly

Moving a property you already own into a company counts as selling it at market value. That usually means Stamp Duty on the full value and capital gains tax on any gain, so restructuring rarely pays. Keep existing properties where they are and choose the right route for each new purchase.

How BPG helps

We compare both routes for your purchase — Stamp Duty, tax on rent, financing and how you will take your income — and our UK accounting partners set up the company, the director’s loan agreement and the tax registrations before you reserve.

This article is general information, not tax or legal advice. Tax rules and treaties change, and the right structure depends on your circumstances, so confirm it with a qualified UK tax adviser before buying.