Set up my first property company last year. Got to the bit on Companies House where it asks for an SIC code and just stared at the screen for ten minutes. What the hell’s a SIC code? Felt like I needed a degree just to fill in a form.
Turns out loads of people get stuck on this exact same question. The SIC Code For Property Investment isn’t complicated once someone explains it properly, but Companies House makes it feel like rocket science.
What Is A SIC Code For Property Investment?
Standard Industrial Classification code. Five digits that tell everyone what your company actually does. Every limited company in the UK needs at least one when you register with Companies House. Think of it as a category label for your business.
There are hundreds of codes for different purposes. The SIC Code List UK has over 600 different codes covering everything from farming to manufacturing to tech startups. Property codes mainly sit in Section L if you’re looking through the official list.
Why does it matter? Three big reasons. Lenders check your SIC code before giving you a mortgage. HMRC uses it for tax purposes. Companies House needs it for their records and statistics. Get it wrong and you might get your mortgage application rejected or have tax complications down the line.
The Main Property Codes You Need
Right, so there are basically four codes that property people actually use. Forget the other 596, as you probably don’t need them.
68209 is the big one. “Letting and Operating of Own or Leased Real Estate” in proper speak. This is your SIC Code For Buy-To-Let properties. If you’re buying properties to rent them out long-term, this is what you want. Single lets, HMOs, rent-to-rent; everything is covered by 68209.
Most property investors use this code. It tells lenders you’re a proper buy-to-let company, not a property trader. Banks like this one because it means you’re holding properties for rental income, which is less risky than flipping.
68100 Is For Buying And Selling Property. So if you’re flipping houses, developing, or trading properties for quick profits, you need this code. Sounds great until you try getting a mortgage. Most buy-to-let lenders won’t touch companies with 68100 because they see property trading as risky. You’re a trading company, not an investment company.
My mate used 68100 when he set up his company because he thought he might flip a property occasionally. His mortgage application got rejected instantly. Had to change the SIC code and wait months before reapplying. Nightmare.
68320 Is For Property Management On A Fee Or Contract Basis. This is if you’re managing other people’s properties as a letting agent or management company. Not for landlords managing their own stuff – that’s covered by 68209.
68310 Covers Estate Agencies And Property Sourcing. If you’re finding deals for other investors and acting as an agent, this is your code.
Getting It Wrong Costs Money
Here’s what happens when you pick the wrong code. Your mortgage application gets binned immediately. Lenders are picky as hell about SIC codes. They have strict criteria and won’t budge.
I’ve seen people set up companies with multiple SIC codes, thinking it covers their bases. Bad idea. If you’ve got 68100 and 68209 on the same company, lenders get confused. Are you trading or investing? They won’t take the risk.
HMRC cares too. Property investment companies get treated differently from property trading companies for Capital Gains Tax. Investment companies don’t qualify for the same reliefs as trading companies. Your SIC code affects your tax situation.
Your business bank might question things if your SIC code doesn’t match what you’re actually doing. Creates unnecessary hassle.
Can You Have Multiple Codes?
Companies House lets you register up to four SIC codes. Doesn’t mean you should, though.
For property investment companies, stick with one code. Keep it simple. If you’re buying to let, just use 68209. Don’t muddy the waters with extra codes you don’t need.
If you’re doing different activities, for example, say you’re flipping some properties and holding others, then set up separate companies. One company for buy-to-let with 68209, another company for trading with 68100. Cleaner structure, less confusion for lenders and HMRC.
My accountant’s dead against mixing activities in one company. He reckons it causes tax problems and makes extracting profits more complicated. Separate companies for separate activities. Costs a bit more to run but saves headaches later.
The SIC Code For Property Maintenance Situation
What if you’re doing maintenance work on properties? That’s a different kettle of fish. Property maintenance falls under construction codes, not property codes.
SIC Code For Property Maintenance would likely be 43290 – “Other Construction Installation” or 43999 – “Other Specialised Construction Activities”. Depends on exactly what maintenance you’re doing.
This is why having multiple companies makes sense if you’re doing different things. One company holds and rents properties (68209), and another does maintenance work (43290). Keeps everything separated properly.
Where To Find Your Code
The SIC Code for Property Investment provides free information on the Companies House website. They’ve got a searchable tool where you type in what your business does, and it suggests codes.
Or just remember: buy-to-let and holding property = 68209. That covers most property investors.
If you’re unsure, talk to an accountant before registering your company. It costs maybe £100-200 for a consultation, but it saves you thousands in rejected mortgage applications and potential tax issues.
Mortgage brokers know this stuff too. If you’re planning to get finance, speak to a broker first. They’ll tell you exactly which SIC code lenders want to see. Some brokers specialise in limited company mortgages and know every lender’s preferences.
Changing Your Code Later
Messed up your SIC code when you registered? You can change it. Just amend it when you file your next Confirmation Statement at Companies House. Takes about ten minutes online.
But here’s the thing: if you’ve already applied for mortgages or set up banking with the wrong code, changing it doesn’t instantly fix those relationships. You might need to reapply for stuff.
Better to get it right the first time. Saves the aggravation.
What Lenders Actually Check
Mortgage lenders look at your SIC code before they even consider your application. It’s one of the first filters. Wrong code? Application rejected automatically. No human even looks at it.
They want to see 68209 for buy-to-let lending. That’s it. Clean and simple. One code, no confusion about what your company does.
If you’ve got 68100 listed anywhere, even as a secondary code, some lenders will reject you. They assume you’re trading properties, which is higher risk. Doesn’t matter if you’ve only ever bought properties to rent – the code is what they judge you on.
This is why property investors get so stressed about SIC codes. It’s not just admin. It directly affects whether you can get finance.
My Advice After Sorting This Mess
The SIC Code for Property Investment is 68209 for 99% of property investors reading this. If you’re buying properties to rent them out, that’s your code. End of story.
Don’t overcomplicate it with multiple codes unless you’re genuinely doing different activities. And if you are, set up separate companies.
Talk to an accountant and a mortgage broker before registering your property company. Spending £200 on professional advice now saves you thousands in rejected applications and tax complications later.
Check what lenders want before you register your company, not after. Different lenders have different requirements, but they all want to see 68209 for buy-to-let.
Keep your company focused on one activity. Don’t try to do everything through one company just to save on Companies House fees. The tax implications and lending restrictions aren’t worth it.
And for god’s sake, don’t just pick a code that sounds about right. This isn’t multiple-choice homework where close enough gets you marks. Wrong code equals rejected mortgage application equals months of delays whilst you sort it out.
When I finally figured this out and registered my company properly with 68209, the whole process took fifteen minutes. The mortgage application went through smoothly. No issues with HMRC. No confusion with the bank.
Should’ve spoken to someone who knew what they were doing from the start instead of trying to puzzle it out myself. Learn from my mistakes, so get proper advice, use the right code, and keep things simple.
That’s it, really. SIC codes seem complicated, but for property investment, it’s straightforward. Code 68209, one company, clean structure. Done.
