UK landlord tax rules, allowances & your estimates
๐ Key Dates
Date
What's Due
5 April
Tax year end
6 April
New tax year starts
31 July
Second payment on account
5 October
Register for Self Assessment
31 October
Paper Self Assessment deadline
31 January
Online Self Assessment & balancing payment
31 January
First payment on account
๐ Your Tax Calculator
โ ๏ธ Section 24 โ Finance Cost Restriction
Mortgage interest relief fully restricted since April 2020.
Landlords can no longer deduct mortgage interest from rental income. Instead, a 20% tax credit on finance costs applies. Higher-rate taxpayers are significantly impacted.
Before Section 24: Deduct mortgage interest โ pay tax on net profit
After Section 24: Pay tax on gross profit โ 20% credit on finance costs
Example: Rent ยฃ15,000, mortgage interest ยฃ9,000, other costs ยฃ2,000
Taxable profit = ยฃ15,000 โ ยฃ2,000 = ยฃ13,000
40% tax on ยฃ13,000 = ยฃ5,200
Minus 20% credit on ยฃ9,000 = ยฃ1,800 Tax bill = ยฃ3,400 (vs ยฃ800 under old rules)
โ Allowable Expenses
These can be deducted from rental income:
โ Letting agent fees
โ Maintenance & repairs
โ Buildings insurance
โ Landlord contents insurance
โ Ground rent & service charge
โ Council tax (if paid by landlord)
โ Accountant/legal fees
โ Travel to property
โ Professional subscriptions
โ Advertising & letting costs
Cannot deduct: Capital improvements, personal expenses, private use portion, mortgage capital repayments.
๐ Capital Gains Tax (CGT) on Property
18%
Basic Rate Taxpayer
Residential property gains (from April 2024)
24%
Higher Rate Taxpayer
Residential property gains (from April 2024)
Annual CGT allowance reduced to ยฃ3,000 (2024/25) โ down from ยฃ12,300 in 2022/23.
30-day reporting rule: CGT must be reported and paid within 60 days of completing a residential property sale.
๐ข Stamp Duty Land Tax (SDLT) โ Additional Dwellings
From October 2024, additional property surcharge increased from 3% to 5% on all rates.
5%
Up to ยฃ250,000
Additional dwelling surcharge applies
10%
ยฃ250,001 โ ยฃ925,000
Surcharge on excess
15%
ยฃ925,001 โ ยฃ1,500,000
Surcharge on excess
17%
Above ยฃ1,500,000
Surcharge on excess
๐ฑ Making Tax Digital (MTD)
MTD for Income Tax (Self Assessment) Rollout:
From April 2026 โ landlords with income >ยฃ50,000
From April 2027 โ landlords with income >ยฃ30,000
You will need to submit quarterly returns digitally.
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๐ Default Tax Period
The UK tax year runs from 6 April to 5 April. Select your default view for dashboard and reports.
๐ Personal Tax Profile
Used to estimate your tax liability. This does not constitute financial advice.
Non-Resident Landlord (NRL): HMRC requires tenants/agents to deduct 20% basic rate tax at source unless you have NRL scheme approval. Ensure you are registered with HMRC's NRL scheme.
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๐ฐ Rent & Income Defaults
Tenancy Deposit Scheme: Since June 2019, deposits are capped at 5 weeks rent (or 6 weeks for annual rent >ยฃ50,000).
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