UK Landlord Tax — Section 24, CGT & Rental Income Specialists
Complete UK landlord tax compliance — rental income reporting, Section 24 mortgage interest restriction planning, buy-to-let CGT strategy, furnished holiday let rules and the most tax-efficient structure for your property portfolio. ACCA qualified landlord tax specialists.
UK Landlord Tax — The Complete Picture
UK landlords face one of the most complex personal tax positions of any individual taxpayer — Section 24 mortgage interest restriction, Stamp Duty Land Tax surcharges, Capital Gains Tax on disposal, changing furnished holiday let rules and the ongoing question of whether to hold property personally or through a limited company.
Section 24 Mortgage Interest Restriction — since April 2020, individual landlords can no longer deduct mortgage interest as a business expense. Instead, they receive a basic rate tax credit of 20% on finance costs. For higher and additional rate taxpayers, this creates a significant additional tax cost — in some cases making an apparently profitable property genuinely loss-making after tax. We calculate the correct Section 24 position and advise on mitigation strategies.
Allowable Expenses — landlords can still deduct a wide range of expenses: letting agent fees, insurance, repairs and maintenance (not improvements), service charges, ground rent, accountancy fees, legal fees for tenancy matters, and the £150/year furniture replacement allowance. We prepare full rental accounts identifying every allowable expense — typically uncovering claims that DIY returns miss.
Limited Company Structures — many landlords with larger portfolios benefit from holding property through a limited company, where mortgage interest remains fully deductible and Corporation Tax rates (19-25%) are lower than personal income tax rates (40-45%). We model the personal vs company comparison in detail — including the SDLT cost of transfer — to give you a genuine, numbers-based recommendation.
✅ What’s Included
- ✓ Rental accounts — all properties
- ✓ Section 24 interest restriction
- ✓ All allowable expenses claimed
- ✓ Furnished holiday let accounts
- ✓ Capital allowances (FHL)
- ✓ Buy-to-let CGT computation
- ✓ 60-day property CGT returns
Landlord Tax 2024/25 — Key Numbers
4 Mistakes That Cost UK Landlords Thousands
Since April 2020, individual landlords cannot deduct mortgage interest as a property expense. Instead, they receive a 20% tax credit on finance costs. For basic rate taxpayers, the net effect is similar to before. For higher rate taxpayers, the restriction can create scenarios where income tax is owed on properties that are cash-flow negative — because income is taxed at 40-45% but interest relief is only 20%. We calculate the correct Section 24 position for every property and advise on mitigation.
Landlords of unfurnished or part-furnished properties can no longer claim the 10% wear and tear allowance — but they can claim Replacement of Domestic Items Relief for the cost of replacing furniture, furnishings, appliances and kitchenware on a like-for-like basis. Many landlords miss this relief entirely. We claim RDI relief for every eligible replacement across all properties in your portfolio.
Furnished holiday lets (FHLs) historically offered significant tax advantages — capital allowances, pension contribution relief, BADR on disposal and CGT rollover. However, qualifying conditions are strict: the property must be available for letting at least 210 days per year and actually let for at least 105 days. From April 2025, the FHL regime has been abolished and FHL income is treated as ordinary rental income. We advise on the implications for former FHL owners.
For landlords building substantial portfolios, holding property through a limited company offers significant advantages — full mortgage interest deductibility, Corporation Tax at 19-25% (versus personal income tax at 40-45%), and the ability to retain profits within the company for reinvestment. The main barrier is the SDLT cost of transferring existing properties — but for new acquisitions, a company is often more tax-efficient from day one. We model both structures in detail before you make any decision.
Landlord Tax — Common Questions
Allowable landlord expenses include: letting agent fees and management charges, buildings and contents insurance, repairs and maintenance (not improvements or renovations), service charges and ground rent, accountancy and legal fees (for tenancy matters), utility bills (if paid by landlord), council tax (if paid by landlord), advertising for tenants, and Replacement of Domestic Items Relief for replacement furniture and appliances. Mortgage interest is no longer deductible as an expense — only a 20% basic rate credit applies.
Whether to hold buy-to-let properties personally or through a limited company depends on your personal tax position, portfolio size, mortgage availability and long-term plans. For higher rate taxpayers with large portfolios, a company often saves significant tax — primarily because mortgage interest remains fully deductible and Corporation Tax rates are lower than personal income tax. However, the SDLT cost of transferring existing properties can be prohibitive. We model both scenarios in detail with real numbers based on your specific portfolio.
Yes — the gain on sale of a buy-to-let property (purchase price minus allowable acquisition costs, disposal costs and improvement costs) is subject to CGT. The rate is 18% for basic rate taxpayers or 24% for higher rate taxpayers on residential property gains (rates increased from October 2024). If the property was previously your main home, partial Private Residence Relief may reduce the gain. We calculate the CGT position and file the mandatory 60-day return within days of completion.
From April 2025, the furnished holiday let (FHL) regime has been abolished. FHL properties are now treated as ordinary UK residential lettings — meaning mortgage interest relief is restricted under Section 24, capital allowances are no longer available, BADR is not available on disposal and pension contribution relief is not generated by FHL profits. We advise all former FHL owners on the impact on their specific position and any planning opportunities before and after the abolition date.
A 3% SDLT surcharge applies on top of standard SDLT rates when purchasing additional residential properties — buy-to-let, second homes, and properties purchased in addition to a main residence. From October 2024, the surcharge increased to 5%. The surcharge applies to the entire purchase price, not just the amount above a threshold. We calculate the total SDLT cost for any property acquisition and advise on whether any reliefs or exemptions apply.
Landlord Tax Done Right — Every Penny Saved
Book a free consultation. We’ll review your portfolio, calculate your current tax position and identify every legitimate saving opportunity — including whether a company structure makes sense for you.