Setting up a property investment company, also known as a Special Purpose Vehicle (SPV), can be an excellent way to structure your investments. But there’s one important detail that many new investors overlook: choosing the right Standard Industrial Classification (SIC) code. Your SIC code defines your company’s activities and can impact your eligibility for mortgage products, tax compliance, and how others understand your business.

Let’s dive into the basics and look at the top SIC codes for property SPVs so you can make an informed choice.

📌 Why Your SIC Code Matters

Every business in the UK is assigned a SIC code when it’s registered. This code isn’t just bureaucratic red tape—it provides clarity on your company’s purpose and activities. Lenders, HMRC, and even potential partners or clients may look at your SIC code, so it’s essential that it aligns with what you do.

Having the right SIC code is particularly important in property investment for three main reasons:

1. Mortgage Eligibility: Certain SIC codes signal to lenders that you are a bona fide property investment business, which can improve your chances of getting the best financing terms.
2. Compliance: HMRC and other regulatory bodies use SIC codes to assess businesses. The correct code helps you stay compliant with UK tax law and avoid potential issues down the line.
3. Business Clarity: Whether for investors, future partners, or even your own records, an accurate SIC code provides a clear picture of your company’s primary activities.

💼 Top SIC Codes for Property SPVs

So, which SIC code should you choose? Here are three popular options for property SPVs, depending on your specific business focus:

1. 68209 – Letting and Operating Owned or Leased Real Estate

Best for: Companies that buy properties to rent them out.

If your company’s primary focus is buying and renting out properties that you own, SIC code 68209 is a great choice. It covers businesses involved in:

• Residential rental properties
• Commercial letting
• Property management of owned assets

Many lenders recognize this code as an indicator of a long-term property investment strategy, making it a go-to for landlords.

2. 68100 – Buying and Selling of Own Real Estate

Best for: Those primarily flipping properties or investing in buy-to-sell projects.

If you’re more interested in buying, renovating, and selling properties, SIC code 68100 is your match. This code signals a trading approach rather than a long-term holding strategy. It can also help you access mortgage products geared toward property traders or those planning to sell after adding value.

3. 68320 – Management of Real Estate on a Fee or Contract Basis

Best for: SPVs involved in managing property for clients.

If your company provides property management services beyond your own portfolio—such as managing rentals for other property owners—68320 is the right choice. This code includes:

• Managing residential or commercial real estate for others
• Services related to rent collection, lease administration, and property maintenance for clients

Although this code isn’t directly about property ownership, it’s useful for businesses that generate revenue through property management services.

🔎 Choosing the Right Code: Key Takeaways

Your SIC code may seem like a small detail, but it has a big impact on the perception and functionality of your property SPV. Choose a code that aligns closely with your primary business activities to avoid future complications and ensure you’re targeting the right mortgage and tax treatments.

If your company’s focus changes, don’t worry—you can update your SIC code with Companies House.