This is general information, not legal, tax, or financial advice. Tax treatment depends on your individual circumstances. See our full disclaimer.
D1
Personal vs Company vs Pension Ownership
How you hold commercial property changes the tax on the rent, the gain and your estate. Compare owning personally, through a company, or in a pension.
Compare your options
Personal name
Pros
- Simple and cheap to run
- Full interest relief (no Section 24 on commercial)
- Straightforward CGT on sale at 18% or 24%
Cons
- Rent taxed at income rates, rising to 22/42/47% from April 2027
- Value sits in your estate for IHT
- Less efficient for rolling up profit
Best for: Lower-value holdings and landlords who want to keep things simple.
Limited company (SPV)
Pros
- Rent and gains taxed at 19 to 25% corporation tax
- Full interest deductibility
- Retain profit to reinvest
Cons
- Profit taxed again when extracted
- More admin and cost
- Moving existing property in triggers SDLT and CGT
Best for: Portfolio landlords rolling up income and planning for growth.
Pension (SIPP / SSAS)
Pros
- Rent received tax-free in the scheme
- No CGT on disposal within the pension
- Your business can rent its own premises
Cons
- Strict rules (arm's length, 50% borrowing cap)
- Residential and mixed-use restricted
- IHT advantage reduced from April 2027
Best for: Business owners buying their own premises, and long-term tax-efficient holding.
Worked scenarios
Higher-rate individual, single let shop
| Option | Outcome |
|---|---|
| Personal | Simple, but from 2027 rent is taxed at 42% and interest is fully relievable. |
| Company | Corporation tax on profit; better if you retain and reinvest rather than draw it all. |
| Pension | Very efficient if it is your own trading premises; watch the rules. |
Business owner renting own premises
| Option | Outcome |
|---|---|
| Personal | Rent taxed personally; no pension benefit. |
| Company | Rent is a company cost but taxed in your hands as landlord. |
| Pension | Often the winner: rent builds the pension tax-free at market rate. |
Decision checklist
- Confirm your tax band including the rental profit, and the April 2027 property rates.
- Model corporation tax vs income tax on the profit you actually retain.
- If moving existing property to a company, get an SDLT and CGT estimate first.
- For a pension purchase, check the arm's length and borrowing rules with a regulated adviser.
- Factor in the exit: CGT on sale and IHT on your estate.
Relevant tools
Want a second opinion?
Send this page to your accountant — pre-filled email, one click.