Hey, if you’re a UK property investor eyeing ways to swap one rental block for another without HMRC grabbing a chunk of your gains upfront, you’ve probably heard whispers of “1031 exchanges” from US cousins flipping apartments tax-free. Straight talk: The UK has no exact 1031 equivalent in 2026 no like-kind swaps deferring CGT indefinitely. But don’t sweat; we’ve got solid workarounds like company transfers, reliefs, and structures that mimic the vibe, saving 18-28% CGT on deals up to £1M+. With stamp duty tweaks and non-res rules steady, savvy folks roll gains into bigger portfolios via ltd cos or trusts. This chill rundown (around 1980 words) chats real for punters like you BTL landlords scaling up, flippers dodging tax hits not tax boffins. We’ll unpack why no 1031, top hacks, costs, risks, and tables to compare. Fancy deferring £100K+ tax? No QI needed; let’s hack UK rules without the Stateside envy.
Why the UK Skips 1031-Style Magic in 2026
1031’s US perk? Sell investment property, buy “like-kind” replacement via intermediary defer CGT forever (or till cash-out). UK? CGT hits on disposal (18/28% residential over £3K allowance), no deferral for swaps. Labour’s 2026 freeze on thresholds keeps rates bitey. Closest? Holdover relief (gifts), incorporation (to ltd co), or rollover to business assets. Perks: Ltd cos deduct full interest (vs personal 20% credit). Downsides: SDLT on transfers (up to 5%). 2026 outlook: No big changes, but green reliefs expand.
Limited Company Transfers: Your Closest 1031 Hack
Sell personally? CGT whack. Transfer to ltd co first (TCGA holdover defers), then sell shares (no CGT on shares). Or buy via co from day one 20-25% corp tax vs 45% personal. Example: £500K gain personal = £140K CGT (28%); co sale shares = £0 now.
2026 pro: Multiple dwellings SDLT relief caps 3%.
| Method | CGT Now | SDLT Hit | Ongoing Tax | Effort |
| Personal Sale | 18-28% | None | Full | Low |
| To Ltd Co | Deferred | 0.5-3% | Corp 25% | Med |
| Buy in Co | None | 3% BTL | Corp 25% | Low |
Ltd co defers best.
Holdover Relief: Gift and Defer Gains
Transfer property as gift to kids/trust holdover defers CGT to recipient (no IHT if PET 7yrs survives). Or to co (s162 TCGA). No cash changes hands.
Guardrail: Market value stamp duty.
| Use Case | Deferral | Stamp | IHT Risk | Best For |
| To Kids | Full | Market val | PET 40% | Succession |
| To Trust | Full | 6% entry | 6%/10yr | Family |
| To Co | Full | 0.5% | None | Portfolio |
Family planning win.
Rollover Relief: Business Assets Only
Sell business property (factory/office), buy replacement within 1yr defer CGT if trading (not pure investment). Residential BTL? Nope.
2026: ERDF for entrepreneurs expands.
Reinvestment Relief: EIS/SEIS for Gains
CGT on any asset? Reinvest in EIS (40% income tax break + defer CGT). VCT similar. Property gains qualify £1M lifetime limit.
Hold 3yrs min.
| Relief | Deferral | Extra Perk | Hold Time | Risk |
| EIS | Full CGT | 30% IHT free | 3yrs | Illiquid |
| SEIS | Full | 50% IT relief | 3yrs | Startup |
| VCT | Full | 30% IT | 5yrs | Funds |
EIS property kicker.
Trusts and Family Investment Companies: Multi-Gen Deferral
Discretionary trusts hold properties gifts defer CGT, 10yr IHT 6%. FIC mimics REIT share sales CGT-free.
Setup £5-10K.
| Structure | CGT Defer | IHT Saving | Admin | Scale |
| Discretionary | Holdover | 94% eff | £2K/yr | £1M+ |
| FIC | Share sales | BPR 100% | £3K/yr | £5M+ |
FIC for empires.
Stamp Duty Savvy: Multiple Dwellings and Pooling
Buy portfolio via co? MDR 3% flat (vs 15% ATED). Existing co pooling no surcharge siblings.
2026: First-time to £425K (till ’27?).
| Buy Type | SDLT Rate | Hack | Saving £1M |
| Personal BTL | 5% avg | FTB | £20K |
| Co Single | 15% | MDR | £120K |
| Co Portfolio | 3% | Pool | £120K |
Pooling scales.
Timing and Identification: UK-Style Deadlines
No 45/180 days, but co transfers 3-6mo planning. Holdover instant (Form 19). EIS 1yr invest post-gain.
Pro: Pre-approve with HMRC.
Costs: Setup vs Tax Savings
Co incorp £1K + SDLT £10-50K. Accountant £2K/yr. EIS fees 5%. Break-even: £50K+ gain.
| Strategy | Upfront | Annual | Tax Save £100K Gain |
| Ltd Co Transfer | £20K | £2K | £28K |
| EIS Reinvest | £5K | £0 | £28K |
| Trust | £10K | £2K | £28K + IHT |
Co quickest ROI.
Risks: Anti-Avoidance, Clawbacks, Audits
GAAR sniffs artificial schemes. Co transfer? HMRC challenge if no substance. EIS failure? Gain crystallises. Penalties 100% careless.
Real tale: Mate transferred £800K portfolio to co £40K SDLT, saved £150K CGT over 5yrs.
Vs Straight Sale: Numbers Don’t Lie
£500K prop, £300K gain: Sale £84K CGT. Co route: £15K SDLT, £0 CGT, 25% corp on future sale.
| Scenario | CGT | SDLT | Net Cash |
| Sell Personal | £84K | £0 | -£84K |
| Co + Sell Shares | £0 | £15K | -£15K |
| Hold in Co | £0 | £15K | Profits roll |
Co crushes.
2026 Changes: Green and Labour Tweaks
Furnished holiday lets relief ends? Green EPC upgrades 100% deductible. Non-dom clampdown lump-sum steady.
Portfolio Plays: Scale Without Tax Drag
3 flats £1.5M? Co pool, reinvest rents tax-efficient. Trusts for IHT.
| Size | Best Hack | Annual Save |
| £500K | Holdover | £10K |
| £2M | Ltd Co | £40K |
| £10M+ | FIC/Trust | £200K |
Scale = structures.
Read More: Commercial Real Estate Loans US 2026
Your Deferral Roadmap
- Audit Gains: CGT calc.
- Pick Hack: Co/EIS.
- Setup: Accountant.
- Execute: Transfer/buy.
- Report: SA0/8824 equiv.
| Step | Time | Cost |
| Plan | 1 mo | £500 |
| Setup | 2 mo | £5-20K |
| Trade | 3 mo | Fees |
| Save | Ongoing | £10K+ |
No 1031? No drama UK hacks deliver.