Accountant for Landlords
Tax advice and returns for buy-to-let and residential landlords — maximising allowable expenses, handling the Section 24 rules, planning capital gains tax on disposals, and getting you ready for Making Tax Digital. Based in Reigate, serving Surrey, London and the UK.
How rental income is taxed
If you let out property, your rental profit — rents received less allowable expenses — is added to your other income and taxed at your marginal rate of 20%, 40% or 45%. You report it through Self Assessment each year. Most landlords with profits above the £1,000 property allowance need to file. Getting the profit calculation and the treatment of finance costs right is where good advice pays for itself.
Allowable vs disallowable expenses
Only revenue expenses incurred wholly and exclusively for the rental business are deductible. Capital improvements are not — though they may reduce capital gains tax when you sell.
| Usually allowable | Not allowable against rental income |
|---|---|
| Letting agent & management fees | Capital improvements (e.g. an extension) |
| Repairs and maintenance | Mortgage capital repayments |
| Landlord insurance | Mortgage interest (relieved separately — see Section 24) |
| Ground rent, service charges, council tax/utilities you pay | Your own time / personal costs |
| Accountancy fees, certain travel | Improvements dressed up as repairs |
Section 24 — the mortgage interest restriction
Since the phased introduction of Section 24, you can no longer deduct residential mortgage interest and other finance costs from rental income. Instead you receive a basic-rate (20%) tax credit for them. For basic-rate taxpayers the effect is broadly neutral, but higher and additional-rate landlords pay more tax than under the old regime, and the way profit is now calculated can tip some landlords into a higher tax band. We model this for you and advise on options.
Capital gains tax when you sell
When you sell a rental property you usually pay capital gains tax on the gain, at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, after deducting your annual exempt amount and allowable costs. Crucially, you must report and pay within 60 days of completion via HMRC's UK Property service. Private Residence Relief may reduce the gain if the property was once your main home. Try our capital gains tax calculator for an estimate, and read more on our capital gains tax page.
Personal vs limited company ownership
Some landlords hold property through a limited company to keep finance costs fully deductible and access corporation tax rates, while others stay personal for simplicity and lower running costs. Incorporation has its own stamp duty and capital gains tax consequences, so it is not right for everyone. We run a tailored comparison before you commit — see our limited company setup service.
Making Tax Digital for landlords
Making Tax Digital for Income Tax starts in April 2026 for landlords with gross property (plus self-employment) income over £50,000, and April 2027 for income over £30,000. You will keep digital records and send HMRC quarterly updates instead of one annual return. Our Making Tax Digital service gets your software and records ready in good time. For the official rules see GOV.UK: rental income.
How we help landlords
From a single buy-to-let to a growing portfolio, we prepare rental accounts and tax returns, apply expenses and Section 24 correctly, handle 60-day CGT reporting on disposals, advise on ownership structure, and keep you MTD-ready. Speak to a local accountant in Reigate who understands the Surrey property market.
Frequently Asked Questions
Do landlords need an accountant? ▼
You are not legally required to use one, but most landlords benefit. An accountant ensures you claim every allowable expense, apply the Section 24 mortgage interest rules correctly, handle capital gains tax and 60-day reporting on disposals, and stay ready for Making Tax Digital — usually saving more than the fee.
What expenses can landlords claim? ▼
You can deduct revenue costs incurred wholly for the rental business: letting agent and management fees, repairs and maintenance (not improvements), landlord insurance, ground rent and service charges, council tax or utilities you pay, accountancy fees and certain travel. Capital improvements are not deductible against rental income but may reduce capital gains tax on sale.
What is Section 24? ▼
Section 24 restricts tax relief on residential mortgage interest and other finance costs. Instead of deducting interest from rental income, landlords receive a basic-rate (20%) tax credit. Higher and additional-rate landlords therefore pay more tax than under the old rules, and the change can push some into a higher band.
How much tax do I pay on rental income? ▼
Rental profit is added to your other income and taxed at your income tax rate — 20%, 40% or 45% — after deducting allowable expenses and the property allowance if relevant. You report it through Self Assessment. Finance costs are handled separately as a 20% tax credit under Section 24.
Do I pay capital gains tax when I sell a rental property? ▼
Usually yes. Gains on residential property that is not your main home are taxed at 18% (basic rate) or 24% (higher/additional rate) after your annual exempt amount. You must report and pay within 60 days of completion using HMRC’s UK Property service. Private Residence Relief may reduce the gain if you once lived there.
Does Making Tax Digital apply to landlords? ▼
Yes. Making Tax Digital for Income Tax begins in April 2026 for individuals with gross property and/or self-employment income over £50,000, and April 2027 for income over £30,000. Affected landlords must keep digital records and send quarterly updates to HMRC. We help you choose software and get ready.
Landlord tax advice
From rental income returns to capital gains tax planning on disposals — we help landlords stay compliant and tax-efficient.