This guide is essential reading for landlords and property business: our guides take you step-by-step through planning your business for tax purposes and complying with your different tax obligations during the life of your rental business.

This is a freeview 'At a glance' guide.

An Adviser? You might want also to jump into our Adviser's Guide: Property Business, profits and losses

Overseas Landlord? If you are based outside of the UK, take a look at A non-resident owner of UK property? Start here

Starting a property business

 Steps

Details

Article & link 

1. 

What is the most tax-efficient way to run a property letting business?
We consider the key issues and give tips on profit extraction and other planning points.


Buy-to-let ownership: personal v. company?
 
 2.

Will Stamp Duty Land Tax (SDLT) be payable when you purchase your property?

  • What rate of SDLT will apply? What if you buy a second residential property?
  • Are there any SDLT reliefs?
  • What tax is paid if the property is in Scotland or Wales?

SDLT: Residential property higher rates

LBTT: Additional Dwelling Supplement

Welsh LTT vs SDLT: Comparing the rates and additional dwellings charge

 3.

 Joint ownership: Are you buying the property jointly with another individual?

  • How does a sole owner bring in another owner?
  • What is the difference between legal and beneficial ownership of land and property?
  • What are the differences between joint tenants and tenants in common and how does that affect your planning?

Joint property: legal v beneficial ownership
 
4. 

Partnerships: Can you run a property business as a partnership?

  • What advantages are to running a business as a partnership?
  • Incorporation of a property partnership


When does a partnership exist?

Incorporporation of a property business

 

 5.

 

What is Furnished Holiday Let (FHL) status?

  • Will your new property qualify as a FHL?
  • What rules apply and whether you can save tax by making sure you have an FHL.

For noting: tax advantaged FHL status ceases from 6 April 2025.





Furnished Holiday Letting
 

 6.

 

Are you a non-UK resident (individual, company or other entity) buying a property to be let in the UK?

What registration requirements are required for non-UK resident owners on purchase and annually with Companies House?

 

A Non-Resident Landlord? Start here

Companies House: Register of Overseas Entities

 7.

 

Non-UK resident and considering buying UK property to let out via an offshore company?

What tax rules apply?

Offshore company holding UK residential property: Tax issues 

 

 8.

 

Are you a company letting your property to your connected parties?

Check whether the Annual Tax on Enveloped Dwellings (ATED) will apply to you.

Can you claim an exemption from the ATED?

How will you structure your property ownership if you think it will apply? 

 

 

 

Annual Tax on Enveloped Dwellings (ATED) 

 9.

 

Rental income should be reported to HMRC.

When do you need to register with HMRC and file a Self Assessment return?

What else do you need to do with HMRC?

See also S.8(1) notice to file a tax return for details about registering with HMRC.

 

 

Do I need to file a tax return? 

10.

 

An accountant's insider guide to property letting and VAT including whether you need to VAT register your property business before you buy your first property.

 

Land & Property VAT (Subscriber guide)

 11. 

 

Commercial property VAT: should you opt to tax a property for VAT? What type of property you can opt to tax? Consider this before you buy or renovate.

 

Opting to tax land and property

 

Your life as a landlord...

How do you calculate your rental income and what expenses can you deduct? Should you incorporate your existing property business?

 Steps

Details

 Article & link

 1.

 

Helpful toolkits that includes everything you need to know about how property profits and losses are taxed in the UK.

Property profits & losses: Toolkit (2023-24)

Property profits & losses Toolkit (2024-25)

 2.


A guide to which accounting basis is best for landlords and how profits are calculated.

Cash basis for property businesses

 3.


If your total property income is below £1,000 you can claim this allowance and no income tax will be due.

Trading and Property Allowances

 4.


The rules on mortgage interest relief have changed in recent years. This guide explains the changes and what relief you can claim going forward. Will your mortgage interest create a loss and if so what can you do with it?

Restricting mortgage interest relief (subscriber guide)

 5.


A freeview note which considers whether and when mortgage interest relief is available when re-mortgaging a rental business; this is a complex area.

Interest on re-mortgaged buy-to-let property

6. 


What if you are just letting a room in your own home, how will it be taxed? What are the rules for the relief to apply?

 Rent-a-room Relief

 7.


This guide sets out when and how a landlord can claim capital allowances (tax depreciation) on capital expenditure on their let property. In other words what tax relief can you get for capital expenditure on improving your property?

Landlords: Capital allowances (subscriber guide)

 8.


A guide explaining what tax relief you can claim when you replace domestic items such as appliances and furniture in your let properties.

Replacement of Domestic Items Relief (subscriber guide)

 9.


A toolkit covering what types of expenses landlords can use fixed-rate expense deductions for and which is better, fixed-rate deductions or actual cost. Can you claim mileage for visiting your properties and at what rate?

Flat (fixed) rate expenses or actual cost toolkit

 10.


A detailed guide to how to incorporate your buy-to-let business into a limited company, what the advantages and disadvantages are and what taxes and reliefs you need to consider.

Incorporation: Property business/Buy-to-let

 11.

Everything you need to know about MTD for landlords before it becomes mandatory from 2026.

Making Tax Digital: Survival guide (for the self-employed & landlords)

 12.


If you are letting commercial property which is opted to tax you may need to be VAT registered and MTD for VAT may apply. All you need to know about how the rules work.

Making Tax Digital: VAT (subscriber guide)

 

Selling your property... 

You have decided it’s time to sell. What tax will you have to pay and when? Are there any reliefs available?

 Steps

Details

 Article & link

 1

 

What are the Capital Gains Tax and Inheritance Tax issues arising with unincorporated property businesses including Furnished Holiday Lets?

Property & letting: CGT and IHT issues 

 2

 

A guide to the rules which replaced the old transactions in land provisions and extended UK taxation to all profits from trading in and developing UK land, regardless of residence.

Profits from dealing in or developing UK land

 3

 

General information about what you can and can’t deduct when calculating a capital gain.

CGT: Deductible expenditure

 4

 

A guide to help you work out what capital gain or loss you have made when you sell your property.

How to calculate a capital gain or loss

 5


How and when does Capital Gains Tax apply to non-residents owning UK property? This guide explains.

Non-resident CGT: UK property

 6

 

Everything you need to know about how and when to pay Capital Gains Tax when you sell your property.

 CGT: Payment of tax
 7

 

A guide to Capital Gains Tax reliefs and how and when they might apply to a property business.

An index to Capital Gains Tax reliefs

 8

 

Can you claim Private Residence Relief when you sell a rental property you have lived in? What are the rules and restrictions?

PRR: Private Residence Relief

 


Small acorn
If you like our content come and join us.

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our FREE weekly SME Tax News update.