Can you sell your house to your own limited company?

Yes, you can sell a property you own to a limited company you control, but because you and the company are connected, the tax rules treat the sale as happening at market value: you may owe Capital Gains Tax on the gain, and the company will usually pay Stamp Duty Land Tax on the market value, including the higher rates that apply to companies. Your personal mortgage will also normally need to be repaid and replaced.

This question mostly comes from landlords thinking about moving a buy-to-let portfolio into a company. This page explains how the transfer is taxed and what to check. It describes the rules in general and is not tax advice. Incorporation is a specialist area, so take advice from a qualified tax adviser and a solicitor before you do anything.

Is a sale to your own company treated as a market value sale?

Yes, for Capital Gains Tax. Under section 286 of the Taxation of Chargeable Gains Act 1992, a company is connected with a person if that person controls it, or if they and people connected with them together control it. Section 18 treats a transaction between connected persons as not being at arm’s length, and section 17 then deems the disposal to be made at market value.

In plain terms, the price you write on the transfer does not change the Capital Gains Tax calculation. Whether the company pays you the full value, owes it to you on a loan account, or pays nothing, your gain is worked out as if you had sold at market value.

How much Capital Gains Tax could you pay on the transfer?

Your gain is broadly the market value at the date of transfer, less what you paid and your allowable costs. For 2026 to 2027, GOV.UK gives Capital Gains Tax rates of 18% on gains within your basic rate band and 24% above it, with a £3,000 tax-free allowance. You must report and pay any tax due on UK residential property within 60 days of completion.

An illustration only: you bought a flat for £150,000, it is now worth £250,000, and your allowable buying and improvement costs were £5,000. The gain is £95,000. After the £3,000 allowance, £92,000 is taxable. If it all falls above your basic rate band, 24% is £22,080. The company may not have paid you a penny, but the tax is still yours to pay. If you once lived in the property, some Private Residence Relief may reduce the gain. Our guide to Capital Gains Tax on property explains the reliefs.

Can incorporation relief defer the gain?

Sometimes, and this is where careful advice matters most. Incorporation relief, under section 162 of the 1992 Act, applies where a person transfers a business to a company as a going concern, with all of its assets (or all except cash), wholly or partly in exchange for shares. HMRC’s manual explains that the gain is “rolled over” by reducing the cost of the shares, so tax is deferred until the shares are sold, rather than cancelled.

Three points make it harder than it sounds:

Your letting must be a business. HMRC’s guidance, drawing on the Ramsay case, says it is the degree of activity as a whole that matters. It accepts relief where someone spends 20 hours or more a week personally on the kind of activities that indicate a business, and looks at other cases individually.
Only the share element is deferred. HMRC’s helpsheet HS276 explains that if you receive part of the value as cash, only the gain matching the share consideration is rolled over. A director’s loan account counts as cash, so leaving money owed to you on loan account means part of the gain is taxed now.
It must now be claimed. For transfers on or after 6 April 2026, HMRC’s policy paper says the relief has to be claimed in your Self Assessment return for the tax year of the transfer, with the information HMRC requires. Before then it applied automatically.

Incorporation relief is a Capital Gains Tax relief. It does not remove the Stamp Duty the company pays.

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What Stamp Duty does the company pay?

The company is the buyer, so it pays the property tax. HMRC’s guidance says that when property is transferred to a company, SDLT may be payable on its market value rather than the price paid, where the person transferring it is connected with the company.

In England and Northern Ireland, companies pay the higher rates on any residential property of £40,000 or more, unless it is subject to a lease with more than 21 years left. The higher rates from 1 April 2025 are:

Portion of the price	Higher rate
Up to £125,000	5%
£125,001 to £250,000	7%
£250,001 to £925,000	10%
£925,001 to £1.5 million	15%
Above £1.5 million	17%

As an illustration, a £250,000 property transferred at market value would attract SDLT of £15,000 (5% of £125,000 plus 7% of £125,000). There is also a flat 17% rate for certain companies buying residential property costing more than £500,000, although it does not apply to property used in a property rental business, among other reliefs. Non-UK resident buyers pay a further 2%.

Wales. The Welsh Government says companies must pay the higher rates of Land Transaction Tax on residential property of £40,000 or more, unless it is subject to a lease with more than 21 years left.

Scotland. Revenue Scotland says the Additional Dwelling Supplement applies to most purchases of residential property by companies, even where they own no other homes. For transactions from 5 December 2024, it is 8% of the price, on top of Land and Buildings Transaction Tax.

Is there an annual tax on homes owned by companies?

There can be. The Annual Tax on Enveloped Dwellings is payable mainly by companies that own UK residential property valued at more than £500,000. For 1 April 2026 to 31 March 2027, the charge starts at £4,600 a year for a property worth £500,001 to £1 million. GOV.UK says reliefs and exemptions may mean you do not have to pay, so check the rules if any of your properties are above that value.

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What happens to your mortgage?

GOV.UK says that if you have a mortgage on a property you are selling, you will need to move it or pay it off. A buy-to-let mortgage in your own name is secured on the property and is normally repaid when it is transferred, and the company, as a separate legal person, will need finance of its own.

Before you commit, check your current mortgage for early repayment charges. MoneyHelper says to look out for these if you are ending a deal early, and to check for administration, legal and valuation costs on any new mortgage. Speak to your lender and a mortgage broker early, because the cost and availability of company borrowing will shape whether incorporation makes sense at all.

If the property is let, Shelter explains that in England a tenancy does not end because the home is sold; it only ends if the new owner takes the right legal steps. Our page for landlords selling up explains how tenancies carry on after a sale.

Is incorporating the right move?

Only a qualified adviser can tell you, because it depends on your income, your plans for the properties, how the portfolio is run and the cost of refinancing. The transfer can bring an upfront tax bill, a Stamp Duty bill at company rates and new borrowing costs, and those need to be weighed against any long-term benefit. HMRC’s guidance on GOV.UK is the free starting point.

What if you would rather sell up?

Some landlords weigh up incorporation and decide to sell instead. You can sell with tenants in place to an investor; our guide to selling a home with sitting tenants explains how that works. A quick sale to a cash buyer usually means accepting less than full market value in return for speed and certainty, and a well-let property may achieve more on the open market if you have time.

If speed or certainty matters more, you can get offers for my home from vetted cash buyers on our panel; just tell us whether the property is tenanted. We introduce you with your consent, we never charge homeowners, and there is no obligation to accept any offer. We cannot give tax advice, so please speak to a qualified adviser about the tax on any sale.

Common questions

Can I sell my buy-to-let to my limited company for less than it is worth?

You can agree any price, but it will not reduce the tax in the way you might hope. A company you control is connected with you, so for Capital Gains Tax the sale is treated as made at market value, and HMRC says Stamp Duty Land Tax may be payable on market value when property is transferred to a connected company.

Do I pay Stamp Duty when I transfer a property to my own company?

Usually, yes. The company is the buyer, so it pays SDLT, and where it is connected with you it may be charged on the market value. Companies pay the higher rates on residential property of £40,000 or more, and a 17% rate can apply to homes over £500,000 unless a relief, such as for a property rental business, applies.

What is incorporation relief?

It is a Capital Gains Tax relief under section 162 of the Taxation of Chargeable Gains Act 1992. Where a business is transferred to a company as a going concern, with all its assets other than cash, in exchange for shares, the gain can be rolled into the cost of the shares. A letting portfolio has to amount to a business, and for transfers from 6 April 2026 the relief must be claimed in your Self Assessment return.

What happens to my existing mortgage?

GOV.UK says that when you sell a mortgaged property you need to move the mortgage or pay it off. A mortgage in your personal name is normally repaid when the property is transferred, and the company will need its own finance. Check for early repayment charges before you commit.