individual landlords set up a limited company and an LLP, and transfer their properties to the LLP
the individuals and the company are the members of the LLP (the company being the corporate member)
The LLP allocates profits to individual members to keep them as basic-rate taxpayers. Any leftover profits go to the corporate member, which can claim a deduction for finance costs.
HMRC states that these arrangements fall under existing legislation. Anyone with these arrangement should consider changing their structure. If you need assistance please contact us.