Event Recap: 'To Incorporate or Not?', Our Hong Kong Property Briefing with On Invest and Harbour Property Group

On 22 October 2026, we co-hosted a lunchtime briefing in Hong Kong with On Invest and Harbour Property Group at Dot Cod, entitled "To Incorporate or Not? UK Property, Structured Smartly." The session explored a question frequently raised by internationally mobile investors: whether to hold UK residential property personally or through a company, and the UK tax implications of each approach.

The well-attended session prompted practical questions about how to structure a UK property investment, the ongoing costs of ownership and the tax implications of a future sale. In our experience, these issues are best considered before a purchase: restructuring later can be costly and may itself trigger tax liabilities.

Choosing the right ownership structure

Siôn Bennett, Co-Founder and Sales Director of On Invest, together with Harbour Property Group, outlined the investment case for UK residential property and discussed market conditions. Stephanie Chan (CTA) and Amy Kwok (ACCA) then explored the UK tax considerations, focusing on a question frequently raised by overseas investors: should UK property be held personally or through a company?

There is no universally preferable structure. Personal ownership is generally simpler to administer and less costly to maintain. However, restrictions on mortgage interest relief can make it less attractive for investors with significant borrowing, particularly those subject to higher rates of income tax.

Company ownership offers a different tax profile. Financing costs are generally deductible when calculating taxable rental profits, subject to the applicable rules, and profits are subject to corporation tax. These potential advantages must be weighed against annual accounting and filing obligations, ongoing administration costs and any further tax arising when profits are extracted.

The appropriate structure depends on the investor's circumstances, including borrowing levels, anticipated rental profits, the intended holding period, the scale of the portfolio and longer-term plans for sale or succession. Using worked examples, we illustrated how these factors can affect the overall outcome, demonstrating why the decision should be based on the full investment lifecycle, rather than headline tax rates alone.

The points that catch overseas buyers out

We also went through the parts of the UK system that most often surprise non-residents:

• Stamp Duty Land Tax is higher for overseas buyers. The additional rates for second and further residential properties apply, and a 2% non-resident surcharge sits on top, so the cost of entry can be materially higher than people expect.
• Capital gains tax on UK land and property applies whatever your residence, and a non-resident must report the disposal and pay any tax within 60 days of completion, even where no tax is ultimately due.
• Letting a UK property from abroad brings you within the Non-Resident Landlord Scheme and the UK Self Assessment system.
• UK inheritance tax remains in point on UK property wherever the owner happens to live.

The common thread is that the ownership decision is cheapest and most effective when it is taken at the outset, with the stamp duty, income tax, capital gains tax and inheritance tax consequences considered together rather than one at a time.

Thank you

Our thanks to On Invest and Harbour Property Group for hosting with us, and to everyone who joined us at Dot Cod. You can read more about On Invest and their UK property services at on-invest.asia.

If you are buying, holding or selling UK property from overseas, we would be glad to look at the ownership and tax position with you properly, before anything is committed. Do get in touch. You may also find our note on the 60-day CGT deadline useful.

We hold briefings like this across Hong Kong, Singapore and elsewhere. To hear about the next one, register your interest.

This article is general information, not personal tax advice. The right ownership structure depends on your circumstances and on the law and guidance in force at the relevant time. Please take specialist advice before acting.