Limited companies can own serviced accommodation, but there are advantages and disadvantages to doing so.
The three main reasons why a limited company may want to own serviced accommodation are:
• to stay more in control of your tax by choosing when to declare your profits;
• to gain financial advantages if you are running multiple properties through one limited company;
• inheritance tax planning.
There are, of course, costs to setting up and administering a limited company, and lenders may charge higher rates to lend to a limited company than a private individual, and applications can be more complicated.