Do property companies qualify as micro-entities?
Most small property companies and single-property SPVs are within the micro-entity size limits and can use the regime.
A few types of company are excluded from the micro-entities rules, so it is worth confirming yours is not in an excluded category — our micro-entity guide explains the limits and exclusions.
How investment property is treated
Under FRS 105, investment property is measured at cost less depreciation, not revalued to fair value each year.
That makes the accounts simpler than under other standards: there are no annual valuations to obtain and no fair-value movements to account for.
Rental income and Corporation Tax
Your company’s rental profit is subject to Corporation Tax. Running costs — letting fees, repairs, insurance and similar — are deductible against that profit.
Unlike an individual landlord, a company can generally deduct mortgage interest and other finance costs as a business expense, which is one of the main reasons people hold property through a company.
What you file each year
A CT600 with accounts and a tax computation to HMRC, micro-entity accounts to Companies House, and a confirmation statement to Companies House.
If the company did not trade or receive rent during the year, it may be dormant — see our dormant company guide.
OneFiler prepares and files the CT600 and micro-entity accounts for a small property company directly to HMRC and Companies House.