Paul Brett is managing director of intermediaries at Landbay
There are two types of company structures for buy-to-let investors holding property, with the most prevalent being a ‘limited company’, which is set up via a Special Purpose Vehicle.
The other less common company structure for BTL property is a ‘trading limited company’ and the two are very different.
The limited company SPVs have a SIC code (‘standard industrial classification’ of economic activities), and this indicates they specialise in property. The SIC codes used in BTL are usually 68100 for buying and selling of real estate, 68209 for letting and operating of own or leased real estate and 68320 for real estate management.