Landlord Tax Specialists
Accountants for Landlords: Specialist Property Tax Services
Accountants for landlords covering rental income, Section 24, CGT and incorporation, from first let to sale. Book a free non-advisory consultation.
7+ years of professional experience · London SW11 office · Clients across England
At a glance
Landlord property tax at a glance
Accountants for landlords handle rental income reporting, allowable expenses, mortgage interest relief, capital gains tax and ownership structure. Our London-based firm helps landlords and property investors at each stage from first let to final sale, face to face or remotely, wherever in England they live.
- Rental income reported on the SA105 property pages of your tax return
- Mortgage interest relief for individuals is a 20% tax reduction (Section 24)
- UK property gains must be reported and paid within 60 days of completion
- Company, joint or personal ownership each carry different tax outcomes
- Free non-advisory consultation to talk through your portfolio
Self assessment return
Tax advice
Tax planning
Why use accountants for landlords from first let to sale?
Choosing accountants for landlords is easier when you treat your tax position as a lifecycle rather than a yearly form. A rental property raises tax questions when you buy it, let it, grow the portfolio and sell it.
MTA Accountants builds its landlord support around those four stages. Seven-plus years in practice have taught us to weigh every property decision against the tax it triggers later.
Buy
Ownership names, borrowing and Stamp Duty Land Tax shape every later bill.
Let
Rental income, allowable expenses and finance costs are reported every year, with records to back them.
Grow or incorporate
New properties, a company or a change of ownership alter both your reporting and your tax.
Sell
Capital gains tax is worked out on sale, and UK property gains are reported within 60 days.
What counts as rental income, and how is it reported?
Rental income is any money received from letting land or buildings, and individuals report it on the property pages (SA105) of a self assessment return. The figure is your rent less allowable expenses, not what lands in your bank account.
There is a £1,000 property allowance each tax year. If your gross property income is £1,000 or less, you generally do not need to declare it, and above that you can claim the allowance instead of actual expenses.
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A property business can normally use the cash basis, which taxes rent when received and relieves costs when paid. You can opt out on the return if standard accounting suits you better.
First-time filers must notify HMRC by 5 October, and the return and payment then follow by 31 January. Our wider tax services cover general self assessment.
Which expenses can you claim, and what counts as a capital improvement?
You can deduct revenue costs of running the let, but not capital improvements. Repairs that restore a property to its original state are deductible, while an extension or an upgrade beyond like-for-like is capital.
Capital costs can reduce the gain when you sell, so keep the invoices. Good bookkeeping makes this split easy to evidence if HMRC asks.
| Usually deductible against rent | Usually capital (not deductible against rent) |
|---|---|
| Letting agent and management fees | Extension, conservatory or loft conversion |
| Repairs restoring original condition | Upgrades beyond like-for-like replacement |
| Landlord insurance and safety checks | Cost of buying the property |
| Like-for-like replacement of furniture and appliances in a let home (replacement of domestic items relief) | Mortgage capital repayments |
| Accountancy fees for the rental business | Private or mixed-use costs |
How do accountants for landlords deal with Section 24 mortgage interest?
Individual landlords cannot deduct mortgage interest from rent. Instead they receive a tax reduction at the basic rate, currently 20%, of the lowest of three figures, as set out in HMRC guidance on residential finance costs.
- Finance costs for the year plus any carried forward
- Profits of the property business
- Income above your personal allowance, excluding savings and dividends
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Any excess is carried forward. Finance costs include mortgage interest, loan interest for furnishings and mortgage arrangement fees.
Illustrative example: rent of £20,000, other allowable costs of £4,000 and mortgage interest of £8,000 give a taxable profit of £16,000, because the interest is not deducted. The tax reduction is 20% of £8,000, or £1,600.
The government has announced separate property income rates from April 2027, with finance cost relief given at a 22% property basic rate.
Joint ownership and married couples' rental income
Married couples and civil partners living together are usually taxed on rental profit in equal shares, whatever the legal split. If you own in unequal shares and are entitled to the income in the same shares, you can ask for it to be taxed that way by making a declaration of beneficial interests (Form 17).
This matters when one partner pays a lower rate, so take advice before changing names on a title.
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Landlords who are not married own and are taxed on their actual shares. Our guide to tax reliefs landlords miss covers more everyday relief points.
Should you buy through a company or in your own name?
A company changes how profit is taxed rather than removing tax. Section 24 does not restrict a company’s mortgage interest, but profits are charged to corporation tax and extracting money brings a second layer of tax.
- Personal name: simpler reporting, annual exempt amount available on sale, interest relief limited to a 20% reduction
- Company or SPV: interest deductible, extra filing and statutory accounts, funds taken out as salary or dividends
- Joint names: income and gains follow the ownership shares
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Setting up and running a company means annual accounts and a confirmation statement. Our business start-up support and accounts preparation cover those steps.
Moving an existing portfolio into a company
Transferring existing properties is treated as a sale at market value, so capital gains tax and Stamp Duty Land Tax can both arise. Incorporation relief may defer the gain, but only where the letting amounts to a business, which depends on the facts.
Higher rates of Stamp Duty Land Tax can apply on additional residential purchases. We model the numbers before you commit.
HMOs, holiday lets and non-resident landlords
HMO rent is taxed under the same property income rules, with costs split between shared and room-specific items. Licensing is set by your local council.
The special furnished holiday lettings regime was abolished from 6 April 2025 for income tax and capital gains tax, as confirmed in HMRC policy papers. Holiday lets now sit within the ordinary property business, so the finance cost restriction applies and some trading reliefs on sale are withdrawn.
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If you live abroad for six months or more a year, HMRC treats you as a non-resident landlord. Your agent or tenant may deduct tax from rent unless HMRC approves you to receive it in full, which you apply for using form NRL1i, as explained in HMRC guidance for people abroad.
How is capital gains tax worked out when you sell a rental property?
Your gain is the sale price less what you paid, less buying, selling and improvement costs. Under the 2026/27 rules in HMRC capital gains tax rates, the first £3,000 of your total gains is exempt. The rest is taxed at 18% up to the top of your basic rate band and at 24% beyond it.
You must report and pay capital gains tax on most UK property sales within 60 days, using a UK property account. See our update on recent capital gains tax changes.
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Private residence relief only helps if the property was once your main home, and you always get relief for the last 9 months of ownership. Lettings relief now applies only where you shared your home with a tenant.
Records, Making Tax Digital and how we work
Hold rent statements, invoices, mortgage statements and completion documents for at least five years, counted from the January deadline after the tax year ends.
Making Tax Digital for Income Tax became compulsory on 6 April 2026 for landlords whose rent and any self-employed income exceed £50,000 before expenses. The bar drops to £30,000 in April 2027 and £20,000 in April 2028, per HMRC sign-up guidance. For help choosing compatible software, see our MTD preparation guide and digital accounting solutions page.
Discuss your portfolio
A free non-advisory consultation covers ownership, borrowing and plans.
Gather records
We list what to collect for each property.
Prepare and review
We prepare the property figures and explain the tax.
File and plan ahead
We submit on time and flag decisions, such as a sale, early.
Accountants for landlords in London and across England
Our base is London SW11, and landlords elsewhere in England are served digitally or, by arrangement, in person. Landlords are among the groups we work with.
We serve landlords in London boroughs and Surrey towns, including Croydon, Sutton, Redhill and Dorking, and the wider areas we serve. More on the firm is on our accountants in London page.
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For orientation, our published rates start at £120 (self assessment return), £150 an hour (advice) and £300 (tax planning). Final quotes reflect portfolio size and the state of your books; setup charges are excluded.
Is it worth using accountants for landlords for a single rental property?
Nothing in law obliges you to hire one, and a straightforward unmortgaged let can be handled yourself. Support earns its keep once you have borrowing, shared ownership, repairs that blur into improvements or a sale on the horizon. A short consultation shows which side of that line you sit on.
Can I deduct all of my mortgage interest from rental income?
Not as an individual landlord. Residential finance costs are not deducted from rent. You instead get a tax reduction at the basic rate, currently 20%, based on the lowest of your finance costs, property profits and income above your personal allowance. Companies are not subject to this restriction and generally deduct interest in the normal way.
What tax will I owe if I sell a buy-to-let at a profit?
Your taxable gain is the sale proceeds minus what you paid and allowable costs, less the £3,000 exemption for 2026/27. Rates for gains arising on or after 6 April 2026 are 24% at higher and additional levels. Basic-rate taxpayers see 18% until the gain carries them beyond the top of that band, after which 24% applies.
How soon must I report and pay tax after selling a rental property?
You must report and pay capital gains tax on most UK property sales within 60 days of completion. Reporting is done through a capital gains tax on UK property account. Missing the deadline can lead to penalties and interest, so gather completion statements and cost records before the sale closes.
Should I claim the £1,000 property allowance or my actual expenses?
You cannot claim both against the same property income, so compare the two each year. If your genuine expenses are below £1,000, the allowance usually gives a bigger deduction. If your costs, such as agent fees, insurance and repairs, are higher, claiming actual expenses normally works out better for you.
Is a limited company always better for a buy-to-let?
No. A company avoids the Section 24 restriction on interest, but profits face corporation tax and taking money out adds personal tax, plus accounts and filing costs. Personal ownership can suit smaller or unmortgaged portfolios. The right answer depends on your income, borrowing and plans, so model both routes first.
What happened to the furnished holiday lettings tax rules?
The special furnished holiday lettings regime was abolished from 6 April 2025 for income tax and capital gains tax. Holiday lets are now taxed as part of your ordinary UK property business, so mortgage interest relief is restricted to a basic-rate reduction and capital allowances no longer apply to new spending.
Do I pay UK tax on rent if I live abroad?
Yes, rent from UK property is generally taxable in the UK even if you live overseas. If you live abroad for six months or more a year you are a non-resident landlord, and your letting agent or tenant may deduct tax from the rent unless HMRC approves you to receive it gross using form NRL1i.
How is rent taxed on a property I own with my spouse?
Married couples and civil partners living together are usually taxed on rental profit in equal shares. If you own unequal shares and are entitled to the income in those same proportions, you can ask for it to be taxed that way by declaring your beneficial interests using Form 17. The rule applies to the profit, so it is worth checking before ownership changes.
Does Making Tax Digital apply to landlords?
It does if your combined self-employment and property income exceeds £50,000 from 6 April 2026. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. Qualifying income is gross, before expenses, and you must keep digital records and send quarterly updates using compatible software.
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MTA Accountants
International House, 66 Lavender Hill, London, SW11 5RQ
Phone: 020 3488 8635
Email: office@mtaaccountants.co.uk
Mon–Fri 8am–8pm · Sat 9am–1pm · Sun closed