LANDLORD & PROPERTY ACCOUNTANTS
Property tax has changed more than any other area of UK tax in the last decade. Most landlords are still filing as though it has not.Full mortgage interest relief is gone, replaced by a basic-rate tax reducer that quietly pushes higher-rate landlords into bigger bills than they expect. Furnished Holiday Lettings were abolished from 6 April 2025. Making Tax Digital arrived for property income in April 2026. And from 6 April 2027 property income gets its own set of tax rates, two percentage points above the main rates.
TaxDigit acts for landlords with a single flat and for investors running portfolios through companies, in the UK and overseas. We handle the compliance properly and, more usefully, we tell you what structure actually suits the portfolio you have rather than the one a seminar told you to build.
What we handle for landlords
From one property to a portfolio, incorporated or personal, resident or non-resident.
- Rental accounts and Self Assessment — allowable expenses, the finance-cost restriction, and the split between repairs and capital improvement.
- Making Tax Digital — digital records and the four quarterly updates due on 7 August, 7 November, 7 February and 7 May.
- Capital gains — the 60-day report and payment on UK residential property, private residence and lettings relief, and the £3,000 annual exempt amount.
- Company and non-resident structures — property companies, ATED where it applies, and the Non-Resident Landlord Scheme for owners living abroad.
The decisions that actually move the numbers
Compliance keeps you legal. These are the choices that change what you pay.
- Personal ownership against a limited company — the answer turns on your marginal rate, borrowing and whether you need the income now.
- Whether an incorporation is worth the stamp duty and capital gains cost of getting there.
- How to time disposals across tax years to use two annual exempt amounts rather than one.
- Whether joint ownership and a Form 17 election would move income to the lower-taxed spouse.
The property tax calendar you cannot ignore
Three dates decide most landlords’ exposure over the next two years.
April 2026 — MTD begins
Landlords with qualifying income over £50,000 are already in. Qualifying income is gross rent plus any self-employment turnover, before expenses. £30,000 follows in April 2027 and £20,000 in April 2028.
April 2027 — property rates split
Property income moves to its own rates of 22%, 42% and 47%, two points above the equivalent main rates. Announced at Budget 2025.
60 days — the deadline most people miss
Capital gains on UK residential property must be reported and paid within 60 days of completion, separately from the annual return. Non-residents must report every UK property disposal within 60 days even when no tax is due.
Who we help
- Buy-to-let landlords with one property or a portfolio.
- Property investors operating through limited companies.
- Former Furnished Holiday Letting owners working out what changed on 6 April 2025.
- Short-term and serviced-accommodation hosts.
- Non-resident landlords under the NRL Scheme.
- Developers and refurbishment projects needing the capital-versus-revenue line drawn correctly.
Frequently asked questions
Am I inside Making Tax Digital for Income Tax?
If your qualifying income from property and self-employment combined was over £50,000 on your 2024/25 return, you are in from April 2026. Over £30,000 on the 2025/26 return brings you in from April 2027, and over £20,000 on the 2026/27 return from April 2028. Qualifying income is gross, before expenses.
Should I put my buy-to-lets into a limited company?
Sometimes, but far less often than the internet suggests. A company gets full relief for mortgage interest and pays corporation tax rather than income tax, but moving existing properties in usually triggers stamp duty and capital gains tax, and taking profits out is taxed again as dividends. It is a calculation, and it depends on your marginal rate and whether you need the income.
What happened to Furnished Holiday Lettings?
The regime was abolished from 6 April 2025 for income tax and capital gains tax, and 1 April 2025 for corporation tax. Former FHL owners lost full finance-cost relief, capital allowances on furniture and fittings, the capital gains reliefs including Business Asset Disposal Relief and rollover relief, and the treatment of profits as relevant earnings for pension purposes.
I live abroad and let a UK property. What do I need to do?
Register under the Non-Resident Landlord Scheme using form NRL1, or your letting agent must deduct basic-rate tax from your rent at source. Approval to receive rent gross does not exempt the income — it moves collection into Self Assessment. You must also report any UK property disposal within 60 days, even if there is no tax to pay.
Can I claim my mortgage payments against rental income?
Not the interest, not directly. Since April 2020 finance costs have been given as a basic-rate tax reducer rather than deducted from rental profit. Capital repayments were never deductible. This is the single most common error we see on landlord returns.
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