Can I Sell My House to My Limited Company

Yes, you can sell your house to your limited company in the UK, but the transaction is subject to strict legal, financial and tax considerations. Whether you are aiming to move a buy-to-let property into a company structure or looking to use a limited company for inheritance planning or tax efficiency, transferring property from individual to company ownership must be handled carefully. It is perfectly legal, but it is not always financially beneficial depending on the circumstances.

This guide explains how to sell your house to your limited company, what the process involves, and what the key legal and tax implications are.

Is it legal to sell property to your own company?

There is nothing in UK law that prevents you from selling a property you personally own to your limited company. The company is a separate legal entity, even if you are the sole director and shareholder. You can enter into a legal sale agreement with your company just as you would with any third party.

However, the transaction must be conducted at arm’s length and reflect a proper market valuation. If the company is paying less than market value, this could be classed as a gift or a connected party transaction, which has tax and accounting implications. Even if no money changes hands, the transfer is treated as a sale in the eyes of HMRC and other authorities.

Why would you sell your house to a company?

There are various reasons why individuals consider transferring a property into a limited company. In buy-to-let scenarios, some landlords use company ownership to benefit from lower corporation tax rates on rental profits or to reinvest profits more efficiently. In some cases, people explore this option as part of estate or inheritance planning.

It is not usually suitable for a main residence, because of the tax disadvantages involved and the loss of private residence relief. For personal homes, transferring to a company is uncommon unless there is a very specific legal or financial strategy in place, such as resolving complex probate or trust arrangements.

Tax implications of selling to your company

This is the most critical area to understand. If you sell a property to your company, even one you already control, you may be liable for capital gains tax. HMRC will treat the transaction as if it took place at market value, regardless of the actual price. You will need to declare the sale on your self-assessment tax return, and pay CGT if the property has risen in value since you acquired it.

The company will also be liable for stamp duty land tax, calculated on the market value of the property, not what it pays. If the property is residential and worth more than £40,000, and the company already owns other residential properties, then the additional three percent SDLT surcharge will also apply.

The company may also need to account for income tax on any future rental income and will be subject to corporation tax on profits. If you later want to take money out of the company, you may also pay dividend or income tax depending on the method.

Mortgage and finance considerations

If the property has an outstanding mortgage in your personal name, it cannot simply be transferred to a company. You would need to redeem the mortgage and take out a new commercial or buy-to-let mortgage in the company’s name. Not all lenders offer these products, and they typically have stricter criteria and higher interest rates.

Your company will also need to be in good financial standing and capable of servicing the debt. Lenders may ask for personal guarantees, especially if the company has little trading history.

The legal process of transferring property

You will need a solicitor to manage the conveyancing process, even if you are effectively selling the property to yourself in another capacity. A formal valuation should be carried out to establish the market value. The company and the individual must each be independently represented in legal terms to ensure the transaction is valid and correctly documented.

Land Registry records will need to be updated to show the company as the new legal owner. You should also inform HMRC and Companies House of the transaction if it involves any financial transfer between you and the business.

Risks and pitfalls

Transferring a home into a limited company structure is rarely beneficial for private residences and can trigger significant tax charges. For investment properties, it can make sense in some cases, but only after detailed tax planning. There are also long-term considerations, such as how you will access equity in the property, what happens if you sell the company or wind it up, and how rental income is distributed or retained.

You must also ensure that the property is not subject to any restrictions, covenants or leasehold rules that prevent sale or require third-party consent.

Conclusion

Selling your house to your limited company is possible, but it is not always straightforward or tax-efficient. The transaction is treated as a market-value sale, with full tax and legal consequences for both the individual and the company. Before taking this step, it is essential to consult with a solicitor and a tax adviser to ensure that the transfer is compliant, financially viable and aligned with your overall property strategy. Done correctly, it can be a useful tool in certain investment or estate planning scenarios. Done incorrectly, it can lead to unexpected tax bills and legal complications.