# Buying residential property through a company

Canonical source: https://rivermarkproperty.com/guides/buying-residential-property-through-company/

A company purchase can change the legal ownership, financing, tax and reporting position. Compare it with personal ownership before deciding who will make the offer.

[Discuss buying a home](https://rivermarkproperty.com/contact/#role=private-client&topic=acquire&briefTitle=Buying%20a%20home)

## Identify the buyer and its purpose

A company, rather than the individual using the home, would own the property. Explain to your solicitor who controls the company, who supplies the funds, who will occupy the home and what is intended after that use ends.

A UK company and an overseas entity are different cases. Some overseas entities must register their beneficial ownership with Companies House before relevant UK property transactions; a solicitor should check the applicable rules.

Further reading: [GOV.UK: register an overseas entity](https://www.gov.uk/guidance/register-an-overseas-entity)

## Ask for a transaction-specific tax comparison

This tax discussion concerns Stamp Duty Land Tax in England and Northern Ireland. Scotland and Wales have different property transaction taxes; ask your adviser which rules apply to the location of the property.

Residential SDLT rules for corporate bodies can differ from those for individuals; higher rates and a non-UK resident surcharge may also require consideration. Annual Tax on Enveloped Dwellings can be relevant to certain company-owned dwellings, subject to the rules and any reliefs.

Ask a qualified tax adviser to compare acquisition, ownership, occupation, eventual sale and any distributions for the actual company and people involved. A relief may require a return or conditions to be met; do not assume it applies.

HMRC describes a 17% SDLT rate for certain corporate purchases of residential property over £500,000, with reliefs and exceptions that depend on the circumstances. That is not a universal company rate; the adviser must check the buyer, use, price and any relief before calculating the transaction.

Further reading: [HMRC: SDLT and corporate bodies](https://www.gov.uk/guidance/stamp-duty-land-tax-corporate-bodies) · [HMRC: ATED basics](https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics) · [HMRC: ATED reliefs](https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-reliefs-and-exemptions)

## Finance and records

A lender may assess the company, its controllers, the property and proposed use differently from an individual application. Obtain finance advice from an appropriately authorised adviser and confirm the proposed borrower before committing.

The conveyancer and lender may need company, beneficial ownership and source-of-funds evidence. Ask what documents are needed and use an agreed secure channel.

Further reading: [FCA: mortgage broker authorisation](https://www.fca.org.uk/firms/authorisation/mortgage-brokers) · [SRA: source of funds and wealth](https://www.sra.org.uk/sra/research-publications/thematic-review-source-funds-wealth-compliance/)

## If a family member will occupy the home

Tell the tax and legal advisers whether the company will make the home available to a director, shareholder or relative, and on what terms. Occupation, benefits, accounts and any relevant reliefs need to be considered together; the title alone does not settle the consequences.

Ask how the company will pay for running costs and how a later sale or transfer would be handled. Record the decisions and obtain advice before the company enters the contract.

Further reading: [HMRC: ATED basics](https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics)

## Plan control and exit

Before an offer, agree who can instruct advisers, approve the purchase and decide on a later sale. Ask advisers about company administration, accounting, occupation arrangements and how funds would be taken out. A structure suited to one family or investment may not suit another.

Rivermark can search for the property and discuss the work and fees. It does not recommend ownership structures or provide tax, legal or mortgage advice.

Official guidance checked 5 November 2026. Confirm the current position and how it applies to your circumstances with the relevant adviser.

- [Stamp duty for overseas buyers of London homes](https://rivermarkproperty.com/guides/stamp-duty-overseas-buyers/)
- [Proof of funds when buying a home](https://rivermarkproperty.com/guides/proof-of-funds-buying-a-home/)
- [UK mortgages for overseas buyers](https://rivermarkproperty.com/guides/uk-mortgages-overseas-buyers/)
- [London buying service](https://rivermarkproperty.com/residential/buying/)

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