Three-quarters of landlords who intend to purchase a new rental property in the next year will use a limited company structure to reduce tax bill. The sharp rise in the switch to buying through a company rather than as a standalone land-lord has been driven by changes to the tax system and the rising costs of running a rental portfolio, which has been exacerbated by soaring interest rates.Buying via a limited company structure offers a number of tax benefits. The main advantage is that limited companies can deduct mortgage interest from company income and pay tax at corporation tax rates, rather than an individual landlord’s personal income tax rate. De-pending on profits corporation tax rate is 19% for those with profits under £50,000, rising to a standard rate of 25%.Limited company ownership can also offer more favourable mortgage financing options. Most lenders set interest coverage ratios at 145% for higher rate taxpayers, whereas limited company applications require a ratio of 125%. Additionally, limited company landlords can typically secure higher loan amounts, further driving the adoption of this approach.