Incorporation Cost Calculator
Estimate the upfront cost of moving a rental property into a limited company (Capital Gains Tax plus Stamp Duty) and how long it takes the annual tax saving to pay that back.
Calculator
Incorporation Cost Calculator
Calculate the upfront cost (CGT + SDLT) and break-even timeline for incorporating your rental property.
Simplified estimate. Your tax band sets the other income assumed when the gain and the dividends are placed in the bands. Actual costs depend on your specific circumstances and require full feasibility analysis.
Free interactive tool
Free Incorporation and company structures tool
See the real cost and saving of incorporating
This interactive tool is built for a larger screen. On a phone, the quickest route is to send us your numbers and have a specialist come back with the figure and the next sensible step.
Ask a specialist for your figure →See the real cost and saving of incorporating
Skip the spreadsheet. Tell us about your situation and a specialist will review your position and the next sensible step, with no obligation.
What incorporating a property actually costs
Moving a personally-held rental into a limited company is a sale to the company at market value. That triggers two upfront taxes: Capital Gains Tax on the gain (18% within the basic-rate band and 24% above, for residential property) and Stamp Duty Land Tax, because the company is acquiring an additional dwelling, so the 5% surcharge applies on top of the standard SDLT bands.
Against those costs, a company deducts mortgage interest in full (Section 24 does not apply to companies) and pays Corporation Tax (19% on profits up to £50,000, rising toward 25%) rather than income tax. The annual tax saving versus personal ownership is what eventually repays the upfront cost. This calculator estimates that break-even point.
Two reliefs can reduce the upfront cost for the right landlords: incorporation relief (TCGA 1992 s.162) can defer the CGT where a genuine property business is transferred as a going concern, and partnership SDLT relief (FA 2003 Sch 15) can reduce the SDLT where a genuine, pre-existing letting partnership incorporates. Both are tightly conditioned and HMRC scrutinises them closely.
Tax is not the whole bill. A real transfer also carries professional fees (conveyancing solicitor, valuation, and lender or broker fees if you refinance into the company), and the company itself costs money to run each year. The optional fee fields in the calculator add those to the upfront total, and the annual running cost is shown as its own line, kept deliberately separate from the tax-saving comparison. For the full year-by-year budget of running a property company, see our guide to property company running costs.
This is a directional estimate. The SDLT figure here applies the full standard bands plus the 5% surcharge on the whole value. Reliefs can change the picture entirely: partnership relief (Sch 15) can reduce the SDLT, and s.162 can defer the CGT. We model your exact position before you commit.
Free review
Thinking about a limited company?
Incorporation is rarely a yes/no answer. We run the full feasibility (CGT, SDLT, reliefs, ongoing tax and mortgage impact) so you know whether it pays for your portfolio. Tell us about your properties for a no-obligation review.
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- 24-hour responseUsually the same working day
No obligation and no hard sell. If your position is already right, we will say so.
Rather not fill in a form? Text or call +44 7723 568557 or email umair@propertytaxpartners.co.uk.