SPVs (usually a Ltd company with SIC codes 68100, 68209, 68320) offer tax advantages for higher-rate taxpayers and portfolio landlords, full mortgage-interest deduction, 19/25% corporation tax on profits, easier inheritance planning. Setup costs £15–40 via an accountant; incorporation of existing portfolios more complex.
Ownership term
SPV
A limited company set up specifically to hold property.
Also known as
Special Purpose Vehicle
Related ownership terms
More from this category
SIPP
A pension wrapper allowing personal control over investments.
Freehold
Outright ownership of the land and building.
Leasehold
Ownership for a fixed term (usually 125–999 years) from a freeholder.
Peppercorn rent
A nominal or zero ground rent.
Ground rent
Annual fee paid by leaseholders to the freeholder.
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