How to Build a Passive Income Business Through Your Company (2026)
A company can hold: rental property, stock market investments, royalty-generating IP, and equity in other businesses.
A company can hold: rental property, stock market investments, royalty-generating IP, and equity in other businesses. "Passive income" in a company accumulates at the CT rate (19–25% in UK) — more efficient than personal income tax rates for high earners. Beware: too much investment income in a trading company can cause it to lose its "trading company" status for BADR/EIS/EMI purposes. This article maps the legitimate passive income strategies through a company structure.
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.