Almost three quarters (73%) of landlords still believe at least one common misconception about limited company buy-to-let (BTL), Coventry for intermediaries reveals.
The research found a persistent knowledge gap among landlords about limited company BTL from misunderstood tax implications to inflated concerns of high costs.
The most common myth, believed by 23% of landlords, is that limited company BTL mortgages offer fewer tax benefits, even though many landlords could benefit from lower corporation tax rates compared to personal income tax.
Meanwhile, 22% of landlords believe property transfers to a limited company are too costly.
While costs such as stamp duty and legal fees may apply, the expense depends on the specific scenario.
Other common misconceptions include the belief that limited company BTL mortgages are always more expensive than a typical BTL mortgage (22%) and that incorporation can impose excessive administrative burdens on a landlord’s business (21%).
It also found that 48% of landlords believe at least one tax or cost-related myth, while 21% believe the misconception that only large-scale landlords can benefit from incorporation.
And 33% of landlords said understanding legal and tax implications was the biggest challenge when incorporating.
Coventry for intermediaries head of intermediary relationships Jonathan Stinton says: “Interest in limited company BTL is growing, and more landlords are exploring incorporation as a way to structure their portfolios more efficiently and future-proof their investments. But our research indicates that many may be doing so based on false assumptions or outdated information.”
“There are real benefits to incorporating, from accessing lower rates of corporation tax and retaining profits within the business, to making it easier to plan for succession or add shareholders in the future. For landlords looking to scale, a limited company structure can offer more control, flexibility, and long-term value.”
“This is where brokers can make a real impact. By helping clients understand the full picture, brokers can become long term strategic partners. That kind of clarity builds confidence, simplifies complex decisions, and creates stronger relationships that last well beyond a single transaction.”
