What Is an SPV?

A special purpose vehicle (SPV) is a private limited company created solely to hold property assets. For international investors, using an SPV can bring clarity, separation of personal and business finances, and a more structured approach to managing a UK property portfolio. It becomes particularly valuable when scaling investments or planning for intergenerational wealth transfer.

Why Use an SPV?

SPVs offer several advantages, especially in terms of tax efficiency. Rental income generated through an SPV is taxed at the UK corporation tax rate, which is currently lower than the higher rates of personal income tax that non-resident landlords may face. Importantly, mortgage interest is still fully deductible within an SPV – something that’s no longer the case for individual landlords. For estate planning, transferring shares of an SPV is often more streamlined than managing probate on UK-based assets, and it allows families to create multi-owner investment entities with professional governance structures.

Key Considerations

Of course, using an SPV comes with added responsibilities. Running a company means annual filings, compliance, and accounting fees. Dividend withdrawals are taxed separately, and mortgage providers offering SPV financing tend to charge slightly higher interest rates while requiring more robust documentation. Despite these considerations, the long-term tax and operational benefits outweigh the upfront complexity for many non-resident investors.

Adventum’s Role

At Adventum Wealth, we support clients in incorporating SPVs tailored to their goals – whether for a single property or an entire investment portfolio. From company setup and financing to tax modelling and compliance oversight, our team ensures your structure is not only tax-efficient but legally sound and scalable.