Incorporation Quick-Check
Incorporation Quick-Check
Manual and scope for UK landlords
What This Calculator Does
The Incorporation Quick-Check compares two ways of holding a rental portfolio:
- In your own name — rental profit is taxed as personal income.
- In a limited company — rental profit is taxed as corporation tax.
It runs both calculations for each tax year from 2025/26 to 2027/28, then estimates how long it would take to recover the upfront cost of incorporation.
The calculator is designed to give a quick, high-level signal. It is not a detailed incorporation model.
Who This Calculator Is For
This calculator is for:
- UK landlords in England & Wales
- Individual property investors
- Married couples, civil partners, or joint owners of rental property
- Anyone considering whether to hold property in a limited company
It is not for:
- Scottish income tax calculations
- Capital Gains Tax (CGT) planning
- Stamp Duty Land Tax (SDLT) calculations
- Detailed company tax planning
- Pension or salary extraction advice
Inputs Explained
| Input | What it means | Why it matters |
|---|---|---|
| Number of properties | How many properties are in the portfolio. | Used for context and risk flags only; does not change tax calculations. |
| Annual rental profit | Total annual profit from the portfolio after allowable expenses. | The main taxable amount used in both structures. |
| Ownership structure | Individual, married/civil-partner joint, or other joint. | Determines how rental profit is split between owners and taxed. |
| Mortgage status | Whether the portfolio has mortgages. | Affects mortgage interest relief assumptions and risk flags. |
| Time horizon | How many years you plan to hold the portfolio. | Used to estimate cumulative tax savings and breakeven. |
| Other personal income | Your other taxable income, such as salary or pension. | Used to allocate the personal allowance and determine tax bands. |
Outputs Explained
After you submit the form, the calculator shows:
- Tax comparison table — individual tax, company tax, and annual tax difference for each tax year.
- Breakeven estimate — how many years it would take to recover the estimated £3,000 upfront incorporation cost.
- Risk flags — warnings about situations the quick-check does not fully model.
- Recommendation — a high-level signal: likely beneficial, borderline, or unlikely beneficial.
When to Seek Professional Advice
This calculator is a quick-check only. Before incorporating, you should speak to a qualified tax adviser or accountant because the calculator does not include:
- Capital Gains Tax on transferring properties to a company
- Stamp Duty Land Tax on transfer
- Mortgage refinancing costs and lender requirements
- Ongoing company running costs
- Section 162 incorporation relief
- How you will extract profits from the company
A professional can model your actual circumstances and tell you whether incorporation makes sense.
Methodology
For the detailed calculation model, assumptions, limitations, and worked examples, see the Incorporation Quick-Check Methodology.
Disclaimer
This calculator provides estimates for information only. It is not tax, legal, or financial advice. Always verify current rates with HMRC or a qualified tax adviser before making financial decisions. PropMatch.uk accepts no liability for decisions made based on calculator outputs.
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