A special purpose vehicle (SPV) is a limited company that’s set up specifically to hold property. It keeps your personal money separate from your property investments and creates a clear structure for easier management. It’s particularly useful when you’re scaling up your investments or planning to pass property to the next generation.

Why use an SPV?

It can save you money on taxes. Rental income inside an SPV is taxed at the UK corporation tax rate, which is lower than the higher personal income tax rates that non-resident landlords often face. Mortgage interest is fully deductible from your tax bill, too – something individual landlords can no longer do. And when it comes to passing property down, transferring SPV shares is often simpler than dealing with probate on UK-based assets. It also lets families create multi-owner structures with proper governance.

Things to keep in mind

Running an SPV means more admin. You’ll have annual account and HMRC filings, compliance requirements, and accounting costs. Dividend withdrawals (the profits you take out of the company) are also taxed separately, and mortgages for SPVs typically have higher interest rates and need more documentation. Still, for many international investors, the long-term tax and structural benefits make it more than worth it.

How Adventum helps

We help you set up an SPV that fits your goals – whether for one property or a full portfolio. We handle company setup, financing, tax planning and compliance to make sure everything is completely legal, tax-efficient and easy for you.