An SPV, or Special Purpose Vehicle, is a limited company set up to hold one purpose only, usually a rental property portfolio. Unlike an individual landlord, an SPV company can deduct mortgage interest in full as a normal business expense before working out its tax bill. This is the exact deduction that individual landlords lost under Section 24 in 2020.
We set up and run the accounts for residential and commercial property SPVs across Slough, coordinated with company formation if you have not yet incorporated, and with mortgage and financial guidance if you are comparing personal ownership against an SPV structure.
Since April 2020, an individual landlord can only claim a 20 percent credit on mortgage interest, not a full deduction. A company is not affected by this restriction at all, and deducts mortgage interest the same way any other business expense is deducted, before tax is calculated. For a higher-rate taxpayer with a heavily mortgaged portfolio, this difference alone can be the reason a property is worth holding in an SPV rather than personally. This is exactly why the comparison needs running against real numbers before a purchase, not assumed from general advice. We model both structures against your actual portfolio before you commit to one.
This service is for property investors in or around Slough considering or already using a company structure to hold property.
We advise on share structure and whether a single SPV or a group structure suits your plans.
We prepare the SPV’s statutory accounts and corporation tax return each year.
We ensure mortgage interest is deducted correctly as a company expense, in full.
We model the tax outcome of holding property personally against holding it through an SPV, based on your figures.
A Special Purpose Vehicle is a limited company set up to hold property and nothing else, keeping the investment separate from any other business activity.
It depends on your tax band and mortgage costs. Companies can deduct mortgage interest in full, which often benefits higher-rate taxpayers more than basic-rate ones.
Yes, though this usually triggers Capital Gains Tax and Stamp Duty Land Tax, so the numbers need checking carefully before transferring.
Not necessarily, though many investors prefer separate SPVs to keep lending and risk separated between property types.
Our team is part of Direct Assist Accountants' ACCA-regulated practice in Slough
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