Should I incorporate my portfolio?

Usually worth modelling above 4 properties for higher-rate taxpayers, but incorporation triggers SDLT and CGT.

What CGT rate applies to buy-to-let?

18% basic-rate, 24% higher-rate on residential property from April 2024.

Within 60 days of completion, via HMRC's UK Property CGT account.

Can I deduct my own labour?

No — your own time is never an allowable expense.

Is furniture allowable?

The Replacement of Domestic Items Relief covers like-for-like replacements, not initial furnishing.

Do I pay SDLT on inherited property?

No — inheritance is exempt from SDLT but has separate IHT implications.

What's the SDLT surcharge in 2026?

5% additional-property surcharge across all bands in England and NI.

When do I need to sign up for MTD?

April 2026 if rental income > £50,000; April 2027 if > £30,000.

Does Landvale produce MTD-compatible records?

Yes — Landvale keeps digital records in the format HMRC's MTD ITSA rules require.

Accounting · Pillar guide

The UK Property Tax Guide for Landlords

A pillar guide to UK property tax for landlords in 2026 — income tax, Section 24, allowable expenses, capital gains, stamp duty, incorporation and MTD.

42 min read · 7,200 words · Updated 1 July 2026

In this guide

01Rental income tax and Section 24 02Allowable expenses 03Capital Gains Tax on sale 04Stamp Duty on purchase 05Incorporation and the SPV question 06Making Tax Digital for Income Tax

Key takeaways

Section 24 caps mortgage interest relief at 20% for individual landlords.

Allowable expenses fall into revenue vs capital — get the split right.

Incorporation makes sense above ~4 properties for higher-rate taxpayers.

CGT rates for residential property are 18% and 24% from April 2024.

MTD for Income Tax requires quarterly digital submissions from 2026/27.

Rental income tax and Section 24

Since April 2020, individual landlords no longer deduct mortgage interest as an expense. Instead, they receive a 20% tax credit. For higher and additional-rate taxpayers, this is the single biggest change to landlord tax in a generation.

Section 24 does not apply to limited-company landlords — full interest deductibility survives inside an SPV.

Allowable expenses

Revenue expenses are deductible in-year; capital expenses reduce future CGT. Getting the classification right is the difference between paying tax now and paying it never.

•Revenue: repairs, letting fees, insurance, ground rent, service charges, accountancy.

•Capital: extensions, improvements, initial furnishing, kitchen and bathroom upgrades beyond like-for-like.

Capital Gains Tax on sale

Residential CGT rates are 18% for basic-rate taxpayers and 24% for higher-rate from April 2024. The annual exempt amount is £3,000. Returns and payment are due within 60 days of completion.

Stamp Duty on purchase

The 5% additional-property surcharge applies to every buy-to-let purchase in England and Northern Ireland. Wales and Scotland run LTT and LBTT with different bands.

Incorporation and the SPV question

The right structure depends on your marginal rate, LTV, growth ambition and exit strategy. Model incorporation costs — SDLT, CGT, refinancing — before pulling the trigger.

Making Tax Digital for Income Tax

MTD ITSA applies from April 2026 for landlords with gross rental income over £50,000, and April 2027 above £30,000. Quarterly submissions, digital records and MTD-compatible software are mandatory.

Frequently asked questions

No — Section 24 only restricts interest relief for individual landlords.