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A SPV (Special Purpose Vehicle) Limited Company is a special company type that can be used to purchase buy-to-let property. As a rule, SPV companies are used only for buy-to-let, and do not carry out other forms of trading, which is why buy-to-let lenders who offer mortgages to Limited Companies usually require them to be a SPV – because that makes them easier to understand (because there is no other business activity to consider), and less risky. Put simply, a SPV is a company which has a “Special Purpose” of owning and renting out property.


Recent changes to the law on buy-to-let property are leading more people to investigate whether an SPV would be worthwhile for them, particularly those who find themselves in the situation where they could end up paying more in tax than they make in profit from their rental property. 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

  1. If you are a high rate taxpayer an SPV is ideal as you will only pay19% corporation tax (2018/2019).

  2. 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.

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


As an experienced landlord accountant, we closely work with many landlords and have helped them to set up SPV. We can also email you a comprehensive guide upon enquiry which further shows the advantanges and disadvantages.


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. Please email us on or call us on 01332 492101 to discuss this further.

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