Choice of business structure: property business (2026)

1. [Advantages of limited company](https://library.croneri.co.uk/po-heading-id_DOzPpYLOv0mfsRd48UfbGA)

1.1. Lesser rates of tax on income/gains

1.2. Full relief for interest (generally)

1.3. Access to additional tax reliefs?

1.3.1. Land remediation relief

1.4. Non-tax issues

1.4.1. Limited liability

1.4.2. Perception that corporate entity should be used (particularly in larger cases)

1.4.3. 'Family succession' easier

1.5. **Avoiding property income surcharge from 6 April 2027. From 20% to 22%, 40% to 42%, and 45% to 47% for the basic, higher and additional rates respecively.**

2. [Disadvantages of limited company](https://library.croneri.co.uk/po-heading-id_1Q4jwDs34kS_5XC5SRWk1w)

2.1. More tax if profits extracted

2.2. Extra administration

2.3. Annual tax on enveloped dwellings?

2.3.1. Value >£500k

2.3.2. But relief for property let commercially

3. [Business Asset Disposal Relief](https://library.croneri.co.uk/po-heading-id_3GeOGxQmR0G9p6jJlOfcNA)

3.1. (formerly Entrepreneurs' Relief)

3.2. Associated disposal by an individual?

3.2.1. Trading premises

4. [Incorporation of existing business](https://library.croneri.co.uk/po-heading-id_BCOBvMrVJkm6y_ZbesHALA)

4.1. CGT liability

4.1.1. Use market value

4.1.2. Incorporation relief?

4.2. SDLT

4.2.1. Use market value

4.2.2. Linked transactions rules

4.2.3. Multiple dwellings relief

4.3. VAT

4.3.1. VAT on commercial new builds; and on property opted to tax

4.3.2. Transfer of going concern relief