Property tax advice for landlords

Start with what's prompting the question. Rising tax on mortgaged rentals points to Section 24 and possibly incorporation. A new purchase raises whether to buy personally or in a company, and the SDLT. A sale brings capital gains tax and the 60-day return. Thinking about the next generation means inheritance tax and passing property on. If you're not sure, a first call will identify which issues matter most for your portfolio.

Yes, and for many landlords that's the most useful starting point. A portfolio review looks at ownership, borrowing, income, gains already built up, your plans and your estate together, because a fix for one tax can create a problem in another. Incorporating to solve Section 24, for example, affects SDLT, capital gains and inheritance tax. You get a written summary of the options worth pursuing, on a fixed fee.

At least every few years, and whenever something significant changes: a new purchase, a remortgage, a sale, a change in your other income, a move abroad, marriage, divorce or a death in the family. Tax rules also change. The new property income rates from April 2027 and the changes to incorporation relief claims from April 2026 are good reasons to look again even if nothing else has moved.

From 6 April 2027, individuals' rental profits in England, Wales and Northern Ireland are taxed at 22%, 42% and 47%, with the Section 24 credit rising to 22%. Before then, check what the change costs you, whether income should be split differently with a spouse, whether new purchases belong in a company, and whether incorporating the existing portfolio now looks more attractive. Companies aren't affected by the new rates.

Yes, it's one of the most common set-ups we see: older properties held personally, newer ones bought through a company. We look at both together, because decisions about one affect the other, for example how you fund deposits, which properties to sell first, how much to take from the company and how the whole portfolio is passed on. Sometimes the answer is to leave both as they are.

Yes. Houses in multiple occupation and serviced accommodation are taxed under the same property income rules, and since April 2025 holiday and short lets no longer have special treatment. These portfolios often involve more hands-on management, which can be relevant to whether the letting is a business for incorporation relief. They also raise their own SDLT and VAT questions, which we'll flag where they arise.

Yes, for landlords whose portfolios include shops, offices or mixed-use buildings alongside residential lets. Commercial property is treated differently in several ways: Section 24 doesn't restrict interest on commercial loans, SDLT uses non-residential rates, and VAT can apply. Mixed portfolios need the borrowing and ownership looked at carefully, because the split between residential and commercial affects how much tax relief you get.

Yes. Trusts holding property have their own rules for income tax, capital gains tax and inheritance tax, including periodic and exit charges for most trusts. Trustees are also within Section 24. We advise trustees and families on how a trust-held portfolio is taxed, whether property should stay in trust, and what happens when it is distributed to beneficiaries, working with the trust's solicitors.

You normally take the properties at their value at the date of death, so a later sale is only taxed on growth since then. Think about whether to keep, sell or restructure before you start letting on your own account, how they fit with properties you already own, whether to share ownership with family, and your own inheritance tax position now that your estate is larger. A deed of variation may be worth considering within two years.

Yes, ideally several months before. A remortgage is often the cheapest moment to change structure, because you're already arranging new borrowing and may avoid early repayment charges. If incorporation, a transfer to a spouse or a new company is on the cards, the new loans need to fit that plan. Arranging a five-year fix first and planning afterwards can lock you in.

Yes, and the time to ask is before you exchange contracts. We'll look at whether to buy personally, jointly or through a company, the SDLT including any surcharges, how the deposit should go in, and how it fits the rest of your portfolio and plans. Ownership is far cheaper to get right at the start than to change later, when SDLT and capital gains tax can apply.

Yes. Selling in the right order and in the right tax years can make a real difference to capital gains tax. We look at the gain on each property, who owns it, your other income, annual exempt amounts, any losses and whether a property was ever your home. We'll also flag the 60-day reporting deadline and whether proceeds should repay debt, be reinvested or be gifted.

Rarely. Long-held properties often have large gains, which can make moving them expensive, but there's still plenty to plan: how income is split, how future purchases are made, how and when properties are sold, and how the portfolio passes on. For inheritance tax, the seven-year clock means earlier is better, but planning in your seventies or eighties can still save a great deal.

Yes. Landlords often come to us after being offered a scheme or a restructure and wanting an independent view before committing. We review the proposal, the assumptions behind it and the risks, and tell you plainly whether it holds up. We're particularly cautious about arrangements HMRC has publicly challenged, such as LLP and liquidation routes for moving a portfolio into a company.

Yes. We advise companies that already own portfolios on corporation tax, extracting profits, director's loan accounts, ATED, bringing family members in as shareholders, adding a holding company and selling or winding up. We also advise landlords setting up a company for new purchases. Many clients have both personal and company-owned property, and we look at the two together.

Yes. Business owners often hold investment property inside their trading company, which can block Business Asset Disposal Relief and complicate a sale. Moving the property out, typically through a demerger, can fix that, but it needs careful structuring and often HMRC clearance. Our sister site [Demerger Tax](https://demergertax.co.uk) explains the options, and our page on separating property from a business covers the landlord side.

Yes, and for couples it usually makes sense. Who owns what, in what shares, and who has spare tax bands are central to good property tax planning, from income splitting to inheritance tax. We can advise you jointly, with both of you on calls, and we'll be clear about any point where your interests could differ, for example on a transfer between you.

Acting first and asking about tax afterwards. Transferring properties into a company, a spouse's name or a child's name, or buying in the wrong name, can trigger capital gains tax and SDLT that can't be undone. Other frequent issues are missing the 60-day CGT deadline, poor records of what each loan funded, and drawing money from a company without a plan. A short conversation beforehand avoids most of them.

Leaving the UK changes how your rent is collected, how a sale is reported and sometimes how a purchase is taxed. Decide first whether to keep, sell or restructure, because some changes are easier while you're UK resident. Then tell your letting agent, consider applying to receive rent gross under the non-resident landlord scheme, and plan for Self Assessment, the 60-day return on any sale and the SDLT surcharge if you buy again.

Yes. Most landlords come to us about income tax or incorporation, but the same decisions shape inheritance tax, so we always consider it. Let property rarely qualifies for Business Relief, so a large portfolio can face 40% tax above the nil-rate bands. Gifts, Family Investment Companies, trusts and insurance can all help, and we'll show you how today's choices affect your estate.

Yes. Choosing who owns a property, whether to buy through a company, how to take profits and when to sell or gift are all legitimate choices the tax rules expect people to make. What HMRC challenges is artificial avoidance: contrived steps with no real purpose beyond saving tax, such as some LLP and liquidation schemes it has publicly warned against. We advise on planning that works on its facts and stands up to scrutiny.