Buy to let question

[Gellco]

Overheard/forced to listen to a slightly confusing conversation on the train home earlier and it got me thinking.

Does anyone here know if this is normal/legal?

Small buy to let portfolio is owned outright with no mortgages by an individual. The rents are paid to a ltd company and the owner takes a salary and dividend monthly from this company. I assume the company is set up just for this purpose.

Many thanks