Property tax, plannedrather than paid.
From a single buy-to-let to a portfolio in a company, we prepare the rental accounts, plan for capital gains and keep you ahead of Making Tax Digital, which applies to many landlords from April 2026.
What makes your finances different.
Mortgage interest is no longer an expense
Since Section 24 was fully phased in, individual landlords get only a 20% tax credit for finance costs. Higher rate taxpayers can pay tax on profit they never received.
Selling triggers a 60-day deadline
Capital gains on UK residential property must be reported and the tax paid within 60 days of completion, separately from the annual return.
Quarterly reporting for landlords
Making Tax Digital for Income Tax covers landlords with gross property and trading income over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028.
To incorporate or not
Holding property through a company restores full interest relief and caps tax at Corporation Tax rates, but transferring existing property can trigger capital gains tax and stamp duty, and mortgage rates differ.
What we do for you.
- Prepare rental accounts and the property pages of your Self Assessment return
- Set up digital records and file quarterly Making Tax Digital updates
- Calculate and report capital gains on sales within the 60-day window
- Model holding property personally versus through a limited company, including incorporation relief
- Run property companies: accounts, Corporation Tax, ATED returns where they apply and director pay
- Advise on jointly owned property, Form 17 elections and splitting income with a spouse
- Handle furnished lettings, HMOs and serviced accommodation, including VAT where relevant
- Deal with HMRC's Let Property Campaign if past rental income was not declared
The tax rules that matter here.
- Section 24 finance cost restriction
- Individual landlords cannot deduct mortgage interest from rental profit. Instead they receive a basic rate (20%) tax credit on the interest. Companies deduct interest in full.
- Capital gains tax on residential property
- Gains above the £3,000 annual exempt amount are taxed at 18% for basic rate taxpayers and 24% for higher rate taxpayers. Report and pay within 60 days of completion. Private residence relief can reduce the gain on a former home, including its final nine months. Since April 2020 lettings relief only applies if you lived in the property at the same time as your tenant.
- Stamp Duty Land Tax surcharge
- Buying an additional residential property in England attracts a 5% surcharge on top of the standard SDLT rates. Companies pay the surcharge on all residential purchases.
- Furnished holiday lettings
- The separate FHL regime was abolished from April 2025. Holiday lets are now taxed like other rental businesses: no capital allowances on furniture, interest restricted under Section 24 and no Business Asset Disposal Relief on sale.
- Allowances
- The £1,000 property allowance can replace expenses for small lets. Rent a Room relief exempts £7,500 a year from letting a furnished room in your own home. Replacement of domestic items relief covers like-for-like replacement of furniture and appliances.
Rules and rates are those in force for 2026/27 at the time of writing. Check your own position before acting.
Run your own numbers first.
- Corporation Tax calculator
Corporation Tax on your profit, including marginal relief.
- Self-employed tax calculator
Income tax and National Insurance on sole trader profits.
- Capital Gains Tax calculator
Tax on selling property, shares or crypto, at 18% and 24%.
Worth asking.
Once you have rental income above the £1,000 property allowance you must report it, and the rules on finance costs, repairs versus improvements and capital gains are easy to get wrong. From April 2026 many landlords also have to file quarterly under Making Tax Digital, which an accountant can handle through compatible software.
It can make sense for higher rate taxpayers building a portfolio, because the company deducts all mortgage interest and pays Corporation Tax at 19% to 25%. Transferring existing properties usually triggers capital gains tax and stamp duty unless incorporation relief applies, and company mortgages cost more. We model your actual numbers before advising.
Sale proceeds less purchase price, buying and selling costs and capital improvements gives the gain. After the £3,000 annual exemption, the gain is taxed at 18% within your basic rate band and 24% above it. You must report and pay within 60 days of completion using HMRC's property account.
A requirement to keep digital records and send HMRC quarterly summaries of rental income and expenses through compatible software, followed by a year-end declaration. It applies from April 2026 if your gross property and self-employment income exceeds £50,000, with lower thresholds following in 2027 and 2028.
Jointly owned property is taxed 50:50 by default for married couples. If you own it in unequal shares you can elect on Form 17 to be taxed on the actual shares, which can move income to the lower earner. Unmarried joint owners are taxed on their actual shares.
Use HMRC's Let Property Campaign to disclose voluntarily. Penalties are much lower than if HMRC finds it first, and we prepare the figures for all affected years and negotiate time to pay if needed.
The services involved
- Self AssessmentPersonal tax return support for individuals, directors and sole traders.
- Annual Accounts & Corporation TaxYear-end accounts and company tax work within the agreed engagement.
- Bookkeeping & Cloud AccountingRegular support with records, reconciliation and keeping the books organised.
- Tax Advice & PlanningPractical tax planning for directors, sole traders and landlords, and an HMRC agent on your side all year.
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