Property Advice and News: Essential Updates for UK Landlords and Investors
By Holland & Co Chartered Accountants
The UK property market continues to evolve, bringing new opportunities and challenges for landlords and property investors. Changes to taxation, rental regulations and mortgage costs make professional advice increasingly important.
At David Crossley Specialist Property Accountants, we help landlords reduce unnecessary tax liabilities, improve profitability and plan for the future.
Making Tax Digital for Landlords
From April 2026, landlords with combined qualifying gross property and self-employment income exceeding £50,000 must comply with Making Tax Digital for Income Tax.
The threshold reduces to £30,000 from April 2027 and £20,000 from April 2028.
Affected landlords must maintain digital accounting records and submit quarterly updates to HMRC using compatible software.
Preparing early can help avoid unnecessary complications and ensure accurate reporting.
Claiming Allowable Property Expenses
Many landlords overlook legitimate expenses that could reduce their taxable rental profits.
Allowable expenses may include letting agent fees, insurance, repairs, maintenance, accountancy fees and certain property management costs.
However, improvements and capital expenditure are treated differently from routine repairs.
For individual landlords with residential properties, mortgage interest generally qualifies for basic-rate tax relief rather than a direct deduction from rental profits.
Accurate bookkeeping is essential to claiming the correct reliefs.
Personal Ownership or Limited Company?
Choosing whether to own investment property personally or through a limited company can significantly affect taxation and profitability.
Limited companies may offer advantages where rental profits are retained for reinvestment. However, additional administration, financing costs and taxation on profit extraction must be considered.
Transferring existing properties into a company can also create Capital Gains Tax and Stamp Duty Land Tax liabilities.
Professional advice should be obtained before changing ownership structures.
Changes to Landlord Regulations
The Renters' Rights Act 2025 introduces important reforms affecting private landlords in England.
Major tenancy reforms commenced in May 2026, including the abolition of Section 21 no-fault evictions and changes to tenancy arrangements and rent increases.
Landlords should review tenancy agreements and management procedures to ensure compliance.
Improving Property Investment Returns
Successful property investment involves more than collecting rent.
Landlords should regularly review mortgage costs, maintenance expenditure, void periods, rental yields and tax liabilities.
Cash-flow forecasts and individual property profitability reports can identify opportunities to improve financial performance.
Capital Gains Tax Planning
Selling an investment property may result in Capital Gains Tax.
Individual residential property gains are generally taxed at 18% or 24%, depending on the taxpayer's circumstances.
Where Capital Gains Tax is payable on a UK residential property disposal, UK resident individuals generally must report and pay it within 60 days of completion.
Planning before a sale can help identify available reliefs and avoid unexpected liabilities.
How We Can Help
David Crossley Specialist Property Accountants, supported by Holland & Co Chartered Accountants, provides specialist advice on rental accounts, property taxation, Making Tax Digital, Capital Gains Tax, limited companies and portfolio profitability.
Whether you own one rental property or a substantial portfolio, our aim is to help you minimise unnecessary tax, maximise returns and make informed investment decisions.
Contact us for specialist property accounting advice.
Website: https://davidcrossley.co.uk
Email: nigel@hollandandcompany.co.uk
Telephone: 0151 420 6666
This article provides general guidance as at October 2026. Tax treatment depends on individual circumstances.
