PROPERTY AND LANDLORD TAX SPECIALISTS
Property Accountants and
Landlord Tax Specialists in Yorkshire
Specialist tax advice and robust accounting for residential landlords and property investors. We help you maximise yields, navigate Section 24 efficiently, and stay fully compliant ahead of incoming regulations.
Landlords and Portfolios
Fixed Fee Pricing
MTD Ready
MTD for landlords begins 6 April 2026
Specialist Tax Support for
Landlords and Property Investors
The landscape of UK property tax is undergoing unprecedented change. With the restriction of finance costs under Section 24, the impending abolition of the Furnished Holiday Lettings (FHL) regime, and the fast-approaching Making Tax Digital (MTD) for ITSA deadlines, landlords face an increasingly complex regulatory environment. Navigating these shifting rules requires proactive, specialist guidance to ensure full compliance while optimising your tax position.
Property Tax Support for
Every Type of Landlord
Whether you're renting out a single property, managing a complex portfolio, or developing new sites, our specialist accountants ensure you remain compliant while maximising your legitimate tax relief.
Individual Landlords
Guidance on allowable expenses and self-assessment filing for standard residential buy-to-let properties.
Portfolio Landlords
Strategic tax planning across multiple properties to optimise yields and manage overall portfolio tax exposure.
First-Time Landlords
Step-by-step registration support and foundational advice for new investors entering the buy-to-let market.
Joint Owners & Spouses
Income splitting strategies and Form 17 declarations to ensure rental profits are taxed as efficiently as possible.
Limited Company
Mitigation of Section 24 constraints through incorporation, corporation tax filing, and smart dividend extraction.
HMO Landlords
Specialist accounting for multi-occupancy investments, handling complex expense allocations and yield calculations.
Former Holiday Let Owners
Advisory support navigating the removal of Furnished Holiday Let tax advantages and transition planning.
Property Developers
Project accounting, CIS compliance, and Capital Gains Tax planning for renovation and ground-up development.
Section 24 — How Mortgage Interest Relief Actually Works
Section 24 of the Finance (No. 2) Act 2015 restricts the amount of tax relief landlords can claim on residential property finance costs. Previously, you could deduct mortgage interest from your rental income before calculating your tax liability.
Now, instead of a deduction, individual landlords receive a basic rate tax reduction of 20% on their finance costs. This means that if you are a higher or additional rate taxpayer, you effectively pay tax on your gross rental income, pushing many into higher tax brackets.
Understanding the nuances of these changes is critical. We help landlords restructure their portfolios—whether through incorporating a limited company or optimising allowable expenses—to mitigate the impact of Section 24 and protect their yields.
Applies to Individual Landlords
Does Not Apply to Limited Companies
20% Tax Credit, Not a Deduction
Regulatory Update
Furnished Holiday Lettings —
What Changed From April 2025
Full Mortgage Interest Deduction Lost
FHL operators can no longer deduct full mortgage interest from rental income, aligning with Section 24 restrictions.
Capital Allowances Restricted
The ability to claim capital allowances on furniture, white goods, and fixtures has been withdrawn for let properties.
Business Asset Disposal Relief Lost
The sale of holiday lets no longer qualifies for the favorable 10% Capital Gains Tax rate previously available.
Pension Relief Status Lost
FHL profits will no longer count as net relevant earnings when calculating your pension contribution tax relief.
These changes significantly impact the profitability of short-term lets. We strongly recommend reviewing your ownership structure immediately to mitigate upcoming tax exposure.
DEDUCTIBLE EXPENSES
Allowable Expenses
Landlords Can Claim
Letting agent fees
Fees paid to agents for managing your property or finding tenants.
Insurance premiums
Premiums for landlord insurance, including buildings, contents, and liability cover.
Property repairs
Costs for general maintenance and repairing wear and tear (excluding capital improvements).
Ground rent
Ground rent and service charges paid for leasehold properties you let out.
Travel expenses
Travel costs incurred strictly for property business purposes, such as inspections.
Replacement items
Relief for replacing domestic items like furniture, appliances, or carpets.
Accountancy fees
Professional fees paid to accountants or tax advisers for property-related services.
Utility bills
Council tax, gas, electricity, and water rates if they are paid by the landlord.
CRITICAL TAX DEADLINES
Capital Gains Tax When You
Sell a Property
60-Day Reporting Deadline
You must report and pay any Capital Gains Tax due within strictly 60 days of completion when selling UK residential property.
Private Residence Relief
If the property was your main home for the entire time you owned it, Private Residence Relief could completely exempt you from Capital Gains Tax.
Calculating Your Gain
Deduct allowable costs—such as legal fees, stamp duty, and substantial improvement works—to legitimately minimise your final taxable gain.
Important Note: Failure to report and pay within the strict 60-day window will result in automatic HMRC penalties and accumulating interest charges. Our specialist landlord accountants ensure you remain completely compliant while minimising your tax exposure.
Strategic Incorporation Advice
Should You Hold Property
Through a Limited Company?
For many landlords, incorporating an existing property portfolio seems like the definitive way to escape Section 24 mortgage interest restrictions. While holding properties within a limited company structure can provide substantial long-term tax efficiencies, the transition is rarely straightforward.
Transferring an existing portfolio often triggers immediate Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT) liabilities. Furthermore, extracting profits exposes you to dividend tax, adding another layer of complexity to your personal returns. We provide nuanced, strategic advice to evaluate whether incorporation truly aligns with your long-term wealth objectives or if alternative structures might yield a stronger financial outcome.
Making Tax Digital for Landlords —
Are You Ready?
The transition to quarterly digital reporting is approaching. Understand the rollout phases below and prepare your property business.
April 2026
Over £50,000
Mandatory digital tax reporting begins for landlords with gross property income exceeding £50,000 per annum.
April 2027
Over £30,000
The compliance threshold lowers, bringing landlords earning over £30,000 into the MTD for ITSA requirements.
April 2028
Over £20,000
The final confirmed phase extends quarterly digital submissions to landlords with income over £20,000.
TAX EFFICIENCY FOR COUPLES
Joint Ownership and
Splitting Rental Income
By default, HMRC taxes jointly owned property between spouses or civil partners at a strict 50:50 split, regardless of who contributed to the purchase. However, if the actual beneficial ownership differs, a Form 17 election accompanied by a declaration of trust allows you to divide the rental income proportionately. This is a highly effective strategy for couples where one partner falls into a lower income tax bracket, enabling significant reductions in your overall tax liability.
How Our Property and
Landlord Service Works
Free Initial Consultation
We begin with a no-obligation chat to understand your property portfolio and tax goals.
We Assess Your Position
Our specialists review your current tax structure to identify potential savings and efficiencies.
We Prepare Your Return
We handle all compliance, calculations, and submissions, ensuring strict HMRC adherence.
Ongoing Support
Receive year-round advisory on legislative changes, Capital Gains, and portfolio expansion.
Why Landlords Choose
SAS Yorkshire Accountants
Genuine Property Expertise
Specialist knowledge in property taxation to ensure your portfolio remains compliant and highly tax-efficient.
Fixed Fee Pricing
Transparent, predictable accounting costs with no hidden surprises or unexpected end-of-year bills.
HMRC Registered Agents
Fully authorised to act on your behalf, managing all communications and submissions directly with HMRC.
MTD Ready
Fully prepared for Making Tax Digital, providing seamless digital record-keeping and compliance solutions.
PROTECTING YOUR PORTFOLIO
Common Mistakes We Help
Landlords Avoid
Property taxation is increasingly complex, and innocent errors can trigger HMRC investigations. We ensure you remain fully compliant while optimising your tax position.
Deducting Mortgage Interest
Under Section 24, mortgage interest is no longer fully deductible. Claiming it incorrectly leads to significant HMRC penalties and backdated tax bills.
Confusing Repairs & Improvements
Routine maintenance is tax-deductible against rental income, but capital improvements must be offset against Capital Gains Tax when you eventually sell.
Missing the 60-Day CGT Deadline
Landlords now have exactly 60 days to report and pay Capital Gains Tax after selling a residential property. Late filings trigger steep, automatic fines.
Ignoring the MTD Rollout
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires quarterly digital submissions. Traditional spreadsheets will soon be entirely non-compliant.
Other Services
Available to Landlords
Self Assessment
Tax Returns
Learn More →
Corporation
Tax
Learn More →
Property
Bookkeeping
Learn More →
Capital Gains
Tax
Learn More →
Also Serving the Areas Surrounding Yorkshire
As well as Batley, SAS Yorkshire Accountants supports clients throughout the surrounding towns and villages of West Yorkshire.
Frequently Asked Questions -
Property and Landlord Tax
What is the Property Allowance and who can claim it?
The property allowance is a £1,000 tax exemption for individuals with income from land or property. If your gross property income is below this, you do not need to declare it to HMRC. If it is higher, you can deduct the allowance instead of actual expenses.
How does Section 24 impact my mortgage interest deductions?
Section 24 restricts landlords from deducting mortgage interest from rental income to calculate taxable profit. Instead, you receive a basic rate (20%) tax reduction on your finance costs, which can push you into a higher tax bracket.
Are Furnished Holiday Lets (FHL) taxed differently?
FHLs currently benefit from specific tax advantages, such as Capital Allowances on furniture and Business Asset Disposal Relief. However, recent legislative changes are affecting these rules, making specialist advice crucial.
What is the 60-day rule for Capital Gains Tax (CGT)?
If you sell a UK residential property and make a taxable gain, you must report and pay the Capital Gains Tax to HMRC within 60 days of the completion date.
Should I transfer my rental properties into a limited company?
Incorporating can offer tax efficiencies, such as Corporation Tax rates instead of Income Tax, and full mortgage interest relief. However, transferring properties incurs Stamp Duty and CGT, so a full portfolio review is necessary.
What are the thresholds for Making Tax Digital (MTD) for landlords?
Landlords with a total gross income from property and self-employment exceeding £50,000 will need to comply with MTD for Income Tax from April 2026. Those earning over £30,000 must comply from April 2027.
What is Form 17 and when should it be used?
Form 17 allows married couples or civil partners who own a property in unequal shares to be taxed on the rental income according to their actual share of ownership, rather than the default 50:50 split.
How does HMRC differentiate between repairs and improvements?
Repairs restore a property to its original condition and are allowable expenses deductible against rental income. Improvements enhance the property's value (e.g. an extension) and are capital expenses, deductible against CGT when you sell.
Am I classed as self-employed if I am a landlord?
Being a landlord is generally treated as an investment rather than a trade. Therefore, you are not classed as self-employed for National Insurance purposes, unless your property activities amount to a trade (like running a hotel or B&B).
How are mixed portfolios (residential and commercial) taxed?
Residential and commercial properties face different tax rules. For instance, commercial properties are not subject to Section 24 mortgage interest restrictions. Careful structuring is required to optimise tax across a mixed portfolio.
Ready to Get Your
Property Tax Sorted?
Our specialist landlord tax advisors are ready to help you optimize your portfolio and ensure full compliance.
Trusted accountants and tax advisers serving individuals and businesses across Yorkshire and the whole of the UK. HMRC registered and fully compliant with Making Tax Digital.
Copyright 2026 SAS Yorkshire Accountants. All Rights Reserved. Registered in England and Wales.