Is a company more tax-efficient?

Often yes for higher-rate taxpayers with mortgage interest — but SDLT and CGT on transfer are non-trivial.

Yes — carried forward against future rental profits.

What is the personal allowance impact?

Rental profit uses your normal personal allowance; income above £100k tapers it.

Do I pay NIC on rental income?

No — rental income is not subject to National Insurance.

How is joint ownership taxed?

Split by ownership share; married couples default to 50/50 unless Form 17 is filed.

Within 60 days of completion on residential sales.

Does Landvale estimate tax?

Yes — live, with S24 modelling per property.

Tax

The Buy-to-Let Tax Guide for 2026

The tax rules every UK BTL landlord needs to know in 2026 — income tax, Section 24, CGT, SDLT and Making Tax Digital.

The Landvale Team·Updated 1 July 2026·9 min read

Key takeaways

Rental profit is taxed at your marginal income tax rate.

Section 24 restricts mortgage interest relief to a 20% credit.

CGT on residential property sale is 18% or 24%.

SDLT includes a 3% surcharge for additional properties.

MTD for landlords starts April 2026 for larger portfolios.

Income tax on rental profit

Rental profit is added to your other income and taxed at 20%, 40% or 45%. For higher-rate taxpayers this is the biggest single line on the tax bill.

Section 24 mortgage interest restriction

Since April 2020, mortgage interest is not deductible from rental income for individual landlords — instead you get a 20% tax reduction. For higher-rate taxpayers this can turn a paper profit into a real loss.

Landvale's Landlord Tax Estimator models Section 24 live and shows the effective marginal rate on every property.

CGT on sale

Residential property CGT is 18% (basic rate) or 24% (higher rate) on the gain after annual exemption. The gain is sale price minus base cost minus capital improvements minus SDLT and legal fees.