Rise in limited company set-up fee unlikely to deter landlords, brokers say

Dariusz Karpowicz, director at Albion Financial Services, said that the recent rise in the cost of setting up a limited company, a sharp 316% increase to £50, might seem steep, but was “unlikely to deter investors from opting for a limited company structure for buy-to-let investments”.

He explained: “This upfront cost is relatively minor in the context of overall investment expenses and potential tax benefits. It’s essential for investors to consult with a property tax specialist to crunch the numbers and ensure that the structure aligns with their financial goals.

“Recently, there has indeed been a noticeable uptick in buy-to-let applications through limited companies, suggesting that many see the benefits outweighing the initial costs. Investors should remain vigilant about ongoing obligations and tax implications of this set-up to make the most informed decision.”