Incorporating your rental property portfolio into a limited company can offer several benefits, including:

- Tax efficiency: Rental profits within a limited company are subject to corporation tax (currently from 19%) rather than personal income tax rates, which can be as high as 45% for higher earners.

-Mortgage interest relief: As an individual landlord, the mortgage interest tax relief is restricted, but limited companies can still fully deduct mortgage interest as a business expense.

- Limited liability: Operating through a limited company limits your personal financial risk, as your liability is limited to the value of your investment in the company.

- Flexibility in profit distribution* Companies offer more flexibility in distributing profits, such as taking dividends or reinvesting in additional properties.

Transferring your rental properties into a limited company can have both costs and tax implications, including:

-Stamp Duty Land Tax (SDLT): The transfer of property to a company is considered a sale, meaning SDLT may be payable, including the 3% surcharge on second properties.

- Capital Gains Tax (CGT): When transferring a property from personal ownership to a company, you may be liable for CGT based on the property's market value at the time of transfer. 

- Mortgage implications: If a mortgage is required, whist will need to be a new one in the name of the company, which will involve new terms or higher interest rates. There may also be early exit charges on your current mortgage.

However, certain reliefs, such as Incorporation Relief, may apply to reduce or defer CGT in specific circumstances. There is also the potential opportunity to avoid SDLT. It’s essential to seek expert advice to fully understand these costs and potential tax liabilities.

Yes, you can withdraw rental income from your limited company in several ways, including:

- Salary: You can pay yourself a salary, which can be tax-efficient if kept within personal allowance limits.

- Dividends: Profits can be distributed as dividends, which are taxed at lower rates than salary but are subject to dividend tax after the annual dividend allowance.

- Director's loan: If you’ve loaned money to your company (e.g. by way of an 'IOU' for the deposit for the property), you can withdraw it tax-free until the loan is repaid.

Each method has its tax implications, and we can help you structure withdrawals in the most tax-efficient way for your circumstances.

No, transferring your properties to a limited company does not mean you lose control over them. As a director and shareholder of the company, you retain control over the decision-making processes, including how the properties are managed, sold, or profits reinvested. The primary difference is that the properties will legally belong to the company, not you personally. However, you can still maintain full operational control by setting up the company structure to suit your needs, such as appointing yourself or other family members as directors or shareholders.

Incorporation Relief is a tax relief that can potentially reduce or defer the Capital Gains Tax (CGT) liability when you transfer personally held rental properties into a limited company. It applies when you transfer your property business as a going concern and receive shares in exchange, rather than cash. By claiming this relief, the CGT on the gain made from the property transfer can be deferred until you sell your shares in the company. 

However, there are specific conditions that must be met to qualify for Incorporation Relief, such as proving that your rental activity constitutes a business rather than passive investment. We can assess your situation and guide you through the process to see if this relief is available for your incorporation.