: "House with red roof and dollar bills symbolizing property income - IBISS & CO

Investment Companies & Property Income

Person with large calculator and coins representing property income - IBISS & CO

Accountants For Investment Companies

Red and gray house with dollar bills representing property income - IBISS & CO

In today’s ever-changing tax environment, managing property income through investment companies has become increasingly complex. Struggling to navigate UK property income tax rules? We help property investment companies in London and across the UK keep more of their rental income through smart, strategic tax planning. 

Red and gray house with dollar bills representing property income - IBISS & CO
Let Property Campaign
Click Here
Investment Companies & Property Income
Non-Doms and Non-Residents
Stamp Duty Land Tax (SDLT)
Lost in UK Property Tax Maze?

Lost in UK Property Tax Maze?

Arrow icon

Confused by HMRC’s tax rules for rental income?

Arrow icon

Unsure how to reduce tax on property income in the UK?

Arrow icon

Need advice on build-to-rent or student housing investments?

Arrow icon

Worried about changing laws in London vs other parts of England?

You’re not alone. Many of our clients felt the same before working with us.

Your Property Tax Experts

We provide specialist support to:

Arrow icon

UK property income investment firms

Arrow icon

Real estate investment companies offering passive income UK-wide

Arrow icon

Support with UK REITs vs private property income companies decisions

Whether you need tax structuring, compliance support or long-term strategic planning, we’ve got you covered.

Tax Landscape is Shifting Fast

Today’s property tax rules won’t be the same tomorrow. Investors across the UK are preparing for changes, and so should you. We help clients stay ahead with guidance on:

Arrow icon

UK property income investment 2025 trends

Arrow icon

Mortgage Interest & Wear & Tear Allowance Changes

Arrow icon

Post-Brexit property tax changes

Arrow icon

Property income vs capital gains strategies

Arrow icon

Top London zones with highest rental yields

Now is the time to futureproof your property investment strategy.

Professional tax advisor with arms crossed.
Professional tax advisor with arms crossed.

Property Income Investment Services

Arrow icon

Rental income tax planning and compliance

Arrow icon

Portfolio structuring for investment efficiency

Arrow icon

Capital Gains Tax, VAT and REIT support

Arrow icon

Support for new and experienced investors alike

We simplify the process of how to invest in UK rental property income and help you take advantage of every opportunity.

Property Income Investment

Next Step:

If you are ready to explore how IBISS & CO can support your property business or investments. Reach out to one of our property specialists at your nearest location or fill out our contact form for more information. We’re here to provide expert guidance tailored to your property accounting needs

Should You
Set Up an Investment Company?

Selecting the right firm to help go through a tax investigation is important since it can be a rigorous process with severe implications. IBISS & CO stands out as a trusted partner in managing tax investigations for several reasons:

Advantages of Property
Income via Investment Companies

In response to the changes, many landlords took hasty steps to set up a limited company to manage their rental income. Indeed, according to Countrywide, a fifth of rental properties are now owned by a corporation – the highest number since 2010 (which is when records began).

On the surface, it’s easy to see why this manoeuvre is attractive: the recent reforms are aimed at landlords paying tax on an individual basis, meaning that those operating via a company are exempt. Property income generated through a company is subject to the corporation tax rate; which, at 19 , is a much more attractive figure than the 40+ levied on higher-rate taxpayers. Mortgage interest is also considered a business expense and can be deducted from the company’s property income tax bill.

Accountant presenting financial data.
Accountant presenting financial data.
Chartered accountant holding laptop with financial graph.

Challenges of Setting Up an
Investment Company for Property Income

The process of setting up a company is not easy, however and not every landlord is eligible to do so. Moreover, the complex rules governing property held within a company mean that different forms of tax are payable and fewer reliefs are available, which could lead to corporate landlords paying more tax – not less.

How We Can Help: Expert Property Tax Advice

Whilst the new charges can be avoided by setting up a company, there are various implications and potential pitfalls. Fortunately, IBISS & CO are experts in all forms of property taxation and accountancy; and, with expert accountants and certified tax specialists on hand to provide recommendations, we can devise a strategy that will best suit you and your business interests –and avoid the kinds of mistakes that could lead to unexpected tax charges.

UK tax advisor presenting financial data with a pie chart.

Flagging up the Risks
Trading vs. Investment Companies

Close Investment Holding Companies (CIHC)

The confusion that exists between a trading firm and an investment company sometimes results in expensive errors for landlords. A company is classed as a Close Investment Holding Company (CIHC) unless it exists to:

Arrow icon

Operating commercially as a business (i.e., carrying out a trade).

Arrow icon

Making investments in land or estates.

Arrow icon

Letting out properties or land. The exceptions to this are if the property will be let to individuals that are closely connected with the company (such as an employee or a relative of an employee).

As such, whilst a company that was formed with the purpose of letting a property to an unconnected party would not be classed as a CIHC, it is common for landlords to hold properties within a company that are then let to a separate trading company also owned by themselves – and this would mean falling within the CIHC rules, which could have major implications for property income businesses.

Tax advisor in green blazer with chart.
Tax advisor in green blazer with chart.
Tax expert using smartphone and tablet to manage property income data

Considerations for Investment
Companies Managing Property Income

Communication during tax investigations should be as clear as possible because a tax investigation can be stressful. You are also informed throughout the various investigation processes. We are always ready to address any questions regarding your case and to report on the processes happening in the case you assigned to us. This sort of communication relieves stress and always gives you the power.

Arrow icon

Investment companies are presently subject to taxation at 19% and double taxation on disposal (corporation tax on gains and dividends tax on withdrawals from the company).

Arrow icon

If you own the relevant properties prior to forming the company, you will need to ‘sell’ these to the new corporation – potentially incurring capital gains charges.

Arrow icon

CGT reliefs (gift relief, roll-over relief, and entrepreneur relief) and business property relief (BPR) reliefs for inheritance tax are not available.

Arrow icon

Finally, there are additional expenses, accountancy regulations and logistical pressures associated with running a company – not least the paperwork, which is more numerous and complex.

Tax expert using smartphone and tablet to manage property income data

This is not to say that setting up a company is not the correct move for certain individuals; indeed, it may be a valuable move as part of a longer-term tax strategy. However the complexities surrounding investment & trading companies means that it is crucial to seek expert advice before committing to a course of action.

When it comes to property income there is no one size fits all approach. IBISS & CO expert team treat every client with individual care and attention utilising our accountancy expertise to formulate a bespoke approach that will mitigate tax liabilities and maximise profits. Contact an IBISS & CO certified tax specialist today to learn more about how we can help your business succeed.

Contact Us Online

Confused Where To Start?

Schedule a Free 15-minute discovery call by providing your contact details, mentioning your requirements, and selecting a convenient date for the call.

How our discovery call works:

We Help Our Clients

A hand and percentage sign on a transparent surface, representing the financial responsibilities

Sole Trader

Checkmark indicating service

HMRC Self employed registration

Checkmark indicating service

Self Assessment submission

Checkmark indicating service

Unlimited accountancy support

Checkmark indicating service

Dedicated client management

from £30 +VAT (Per Month)

A sheet of paper

Ltd Company

Checkmark indicating service

All your accountancy questions answered

Checkmark indicating service

Statutory Year End accounts

Checkmark indicating service

Corporation Tax filing

Checkmark indicating service

Phone and email support

from £70 +VAT (Per Month)

Two hands extended towards each other, symbolizing partnership and collaboration.

Tax Advice

Checkmark indicating service

Income Tax Planning

Checkmark indicating service

Overseas Workday relief

Checkmark indicating service

Effective Tax planning for property landlords

Checkmark indicating service

Capital Gain Tax Mitigation

from £150 +VAT (Per Hour)

A document icon placed prominently against a background of upward-pointing arrows and a growing bar graph, symbolizing growth and progress, representing how IBISS & CO supports clients in growing their businesses through expert guidance.

Growing Business

Checkmark indicating service

Self Assessment

Checkmark indicating service

MTD VAT Submissions

Checkmark indicating service

Annual Accountancy Health check

Checkmark indicating service

Our speediest support & service

from £150 +VAT (Per Month)

IBISS Offices Location

Reviews

BLOG

Explore the IBISS blog and case studies for helpful tips on tax accounting and business advice. If you need expert support just get in touch with us. The IBISS & CO expert team accountants & tax advisers is always here to help you and your business succeed.

Man using desktop property search interface with buy, sell, rent options in a professional office setting.

If you’re building your own home, you may be able to claim VAT on new build and recover thousands of pounds paid …

Group of professionals discussing tax compliance and responsible data sharing

The relationship between Airbnb and tax in the UK has altered slightly. As of 1 January 2024, Airbnb is required to share …

Forensic accountant play an important role in pointing out financial fraud & solving disputes while make sure accurate reporting. If you suspect …