How do I take money out of my property company?
Profits made in a property company belong to the company, so landlords pay tax again to take them out. The main routes are dividends, salary, repayment of money the director lent the company, and, on a final exit, liquidation, where distributions are usually taxed as capital gains on the shares.
Read more in our guide: Selling a portfolio held in a company or trust
Extraction routes compared
| Route | Tax for the director |
|---|---|
| Dividends | £500 allowance, then 10.75% / 35.75% / 39.35% from April 2026 |
| Salary | Income tax and National Insurance; deductible for the company |
| Director's loan repayment | Tax free, up to the amount you lent in |
| Liquidation (MVL) | CGT on distributions at 18% / 24%, subject to anti-avoidance rules |
| Pension contributions | Company deduction if justified as remuneration |
Two layers of tax
A limited company pays Corporation Tax at 19% to 25% on rental profits and gains. The shareholder then pays personal tax on what is taken out. Planning the timing and route of extraction is often as important as the Corporation Tax itself.
Director's loan account
Many landlords lend money to their company to buy property, or credit the company with a loan on incorporation. Repaying that loan is tax free and is often the first route used after a sale. Taking more than you are owed creates an overdrawn loan account, which can trigger a temporary company tax charge and a benefit in kind.
Dividends
Dividends are paid from retained profits after Corporation Tax. From April 2026 the basic and higher dividend rates rose by two points, to 10.75% and 35.75%. Spreading dividends across tax years and between shareholders can use more of each person's basic rate band.
After selling the portfolio
Once the properties are sold, the company holds cash. A members' voluntary liquidation can distribute it as capital, taxed at CGT rates rather than dividend rates. Anti-avoidance rules can treat the distribution as income if you carry on a similar property activity within two years. Business Asset Disposal Relief does not usually apply, because a property investment company is not a trading company.
PSC does not give tax advice or advise on or arrange the sale of company shares. Any proposal involving company shares is checked by a solicitor before details are shared.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
Profits made in a property company belong to the company, so landlords pay tax again to take them out. The main routes are dividends, salary, repayment of money the director lent the company, and, on a final exit, liquidation, where distributions are usually taxed as capital gains on the shares.
Yes. A share sale avoids the company's own tax on the property gains but buyers usually discount the price for the latent tax.
It can be, if you plan to reinvest or draw it slowly in low-income years. Take advice on the Inheritance Tax position of shares in an investment company.
Yes, if they own shares. Dividend waivers and arrangements that shift income artificially can be challenged by HMRC.
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