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The HMO Mortgage Broker
LLP

Ltd vs LLP Calculator

Compare the annual tax on HMO profit through a limited company, an LLP or personal ownership.

This calculator illustrates the annual tax on HMO profit for up to four equal members, held through a limited company, an LLP or personal ownership, using the rates for the tax year you choose. It is an illustration, not tax advice, and it does not recommend a structure.

Your figures

Annual figures for the whole property or portfolio, split equally between members.

Bills, repairs, letting fees and insurance. Exclude mortgage interest.

Salary or pension, before tax. The same for each member.

Share of the company's after-tax profit paid out

Members or shareholders
Tax year

Your results

Lowest tax in this illustration: Limited company
£13,249
Annual difference to the next (LLP): £1,897
MeasureLtdLLPPersonal
Taxable profit£28,000£48,000£48,000
Corporation tax£5,320––
Income tax on profit–£15,146£15,146
Dividend tax£7,929––
Total tax£13,249£15,146£15,146
Net income kept£14,751£12,854£12,854
Left in company£0––

Illustration only, not tax advice. Uses income tax rates for England, Wales and Northern Ireland. Your position depends on your full circumstances; speak to a qualified tax adviser before choosing how to own property.

In this simplified model a personally owned property held jointly gives the same figures as the LLP, because LLP members are taxed as individuals on their share, with the Section 24 restriction on mortgage interest. LLP mixed-membership rules (corporate members) are not modelled. Also not modelled: mortgage rate differences for companies and LLPs, stamp duty and capital gains tax on transferring property, accountancy costs, Scottish income tax rates, and tax on profit left in the company when it is taken out later.

Illustrative figures only, based on the numbers you enter. Not a mortgage offer.

How we calculate Ltd vs LLP Tax

Methodology and data sources, updated October 2026

Formulas

LLP and personal: each member's shares
Profit share = (Annual rent - Running costs) ÷ Members; Interest share = Mortgage interest ÷ Members

LLP members are taxed as individuals on their share of the profit, and the Section 24 restriction on mortgage interest applies to each member. Personal joint ownership is the same calculation in this simplified model.

LLP and personal: income tax per member
Income tax on (Other income + Profit share) - Credit - Income tax on Other income alone

Taxed at the property income rates for the tax year. Credit = Basic rate × lower of (Interest share, Profit share, Income above the personal allowance); the rate is 20% for 2026/27 and 22% for 2027/28.

LLP and personal: totals
Total tax = Income tax per member × Members; Net kept = Rent - Running costs - Interest - Total tax

Every member has the same other income and the same share.

Company: corporation tax
Profit = Annual rent - Running costs - Mortgage interest; Corporation tax on Profit

19% on profit up to £50,000, 25% from £250,000, with marginal relief in between.

Company: dividend tax
Dividends = (Profit - Corporation tax) × Share taken as dividends; Dividend tax = [Income tax on (Other income + Dividends ÷ Members) - Income tax on Other income alone] × Members

Dividends are split equally between shareholders and taxed on top of each one's other income, after the £500 dividend allowance.

Company: totals
Total tax = Corporation tax + Dividend tax; Net kept = Dividends - Dividend tax; Left in company = Profit - Corporation tax - Dividends

The headline names the structure with the lowest total tax and the annual difference to the next lowest.

Data sources

  • Yes:GOV.UK: Changes to tax rates for property, savings and dividend income (November 2025 Budget)
  • Yes:GOV.UK: Income Tax rates and Personal Allowances
  • Yes:GOV.UK: Corporation Tax rates and marginal relief

Key assumptions

MembersLLP members, joint owners and company shareholders are the same people with equal shares.
1 to 4, equal shares
Other income
Same for every member
Default figuresRent, costs, interest and other income are example figures. Replace them with your own.
Illustrative only
LLP membersMixed-membership rules for corporate members are not modelled.
Individuals only
Tax ratesScottish income tax rates are not modelled.
England, Wales and Northern Ireland
Types of incomeOther income is treated as employment or pension income. Savings income is not included.
Other income, property profit and dividends only
Not includedNo pension contributions, Gift Aid, student loans or National Insurance.
Reliefs and deductions
Section 24 carry forwardFinance cost relief that cannot be used in the year is not carried forward. Losses are not carried forward either.
Not modelled
Associated companiesCorporation tax uses the small profits rate, main rate and marginal relief limits for a single company.
None
Profit left in the companyRetained profit is shown separately. Tax when it is paid out in a later year is not modelled.
Not taxed again here
Costs of each structureMortgage rate differences for companies, stamp duty and capital gains tax on transferring a property into a company, and accountancy costs.
Not modelled