Property Ownership Decision Tree

Navigate the best ownership structure for your property investment.

Property Ownership Decision Tree

SPV vs. Personal: Which Ownership Type is Best For You?

1 Is this a personal residence?
YES
→ Personal ownership
SPVs are for investments only.
NO
→ Continue to Question 2
2 Are you buying this property with a mortgage?
YES
→ Go to Question 3
NO
→ Go to Question 5
3 Is mortgage interest a major cost?
YES
→ SPV ownership
Full mortgage interest is tax-deductible for companies.
NO
→ Continue to Question 4
4 Are you a higher rate taxpayer (earning over £50,270)?
YES
→ SPV may be more efficient
Personal ownership restricts mortgage interest relief to 20%, while companies pay 25% Corporation Tax on profits.
NO
→ Personal ownership may be more efficient
Especially when combined with allowances below.
5 Are you buying jointly with a spouse?
YES
→ Personal ownership becomes more attractive
Each spouse gets:
  • £12,570 personal allowance
  • £1,000 property allowance (optional)
  • £3,000 capital gains allowance
Total potential tax-free: £26,570 per year
(+ £6,000 CGT when selling)
NO
→ Continue to Question 6
6 Is this a one-off or small portfolio purchase?
YES
→ Personal ownership is simpler
Less admin, no corporation filings.
NO (2+ properties)
→ SPV offers better scaling
Better tax planning and professionalism.
7 Will you reinvest profits or draw income regularly?
REINVEST
→ SPV allows retained earnings
Taxed at 25%, great for compounding growth.
DRAW INCOME
→ Personal ownership gives simpler access
No dividend tax complications.
8 Is inheritance or succession planning important?
YES
→ SPVs offer flexibility
Shares can be transferred or held in trust.
NO
→ Continue to Question 9
9 Will this be owned with a partner or third party?
YES
→ SPV recommended
Clear shareholding, profit split, legal structure.
NO
→ Either option could work
Consider your specific circumstances and consult a professional.
Personal Ownership Recommended
SPV Ownership Recommended
Continue to Next Question

Additional Personal Ownership Tips

  • Split ownership smartly: Use tenants in common and Form 17 to assign income where most tax-efficient.
  • Claim all deductions: Repairs, lettings fees, insurance, accounting, etc.
  • Use allowances:
    • £12,570 personal income tax allowance
    • £1,000 property income allowance (alternative to expense deduction)
    • £3,000 CGT allowance (doubles for spouses)
  • Children 18+ can hold shares: shifts income to lower tax bracket (be mindful of CGT/SDLT on transfer).

Final Cheat Sheet

Scenario Personal Ownership SPV Ownership
One-off, low-income buyer Yes No
High-income landlord No Yes
Mortgage-heavy deal Maybe (interest relief capped) Yes (fully deductible)
Reinvesting profits No Yes
Involving partners or scaling portfolio No Yes
Using spousal allowances Yes No
Estate/succession planning Maybe Yes

Need Clarity on Personal vs. SPV Ownership?

Our property experts will answer your questions and outline the simplest actions to build reliable rental income from UK property.

Receive clarity without obligations.