SPV Setup Checklist for UK Property Investors

This checklist is designed to help you think through key considerations before setting up a Special Purpose Vehicle (SPV) for property investment. It is for general guidance only and should not be considered personalised advice.

1. Investment Objectives

• Clarify your long-term property strategy (income vs growth).
• Define your investment time horizon.
• Consider whether you plan to build or trade a portfolio.

2. Ownership and Structure

• Decide whether an SPV or personal ownership is appropriate.
• Consider holding company or group structures if relevant.
• Review shareholder arrangements and future flexibility.

3. Funding and Finance

• Identify deposit sources.
• Review mortgage options and lender criteria.
• Stress test affordability under different rate scenarios.

4. Tax Considerations

• Understand corporation tax implications.
• Review dividend strategy and extraction planning.
• Consider interaction with personal tax position.

5. Succession and Family Planning

• Consider long-term ownership intentions.
• Review succession planning objectives.
• Document shareholder intentions where appropriate.

6. Risk Assessment

• Consider interest rate risk.
• Plan for rental voids and maintenance costs.
• Ensure adequate insurance cover.

7. Compliance and Administration

• Ensure company registration is correct.
• Set up appropriate accounting systems.
• Understand ongoing reporting obligations.

8. Professional Advice

• Speak with a mortgage adviser regarding borrowing structure.
• Consult an accountant regarding tax implications.
• Consider seeking independent advice for additional reassurance.

Disclaimer: WIS Accountancy Ltd is not authorised or regulated by the Financial Conduct Authority.
Tax and accounting services are regulated by the Chartered Institute of Management Accountants (CIMA). Mortgage advice is regulated by the Financial Conduct Authority. This checklist is for general information only.

FCA Disclaimer

Your home may be repossessed if you do not keep up repayments on your mortgage.