Industry Specialism
UK property tax has become one of the most contested and rapidly-changing areas of personal finance: mortgage interest restriction, Section 24, MTD ITSA, the abolition of the FHL regime, and the ongoing debate around incorporation. Fernside Accounting works with landlords across Redbridge, Waltham Forest and Epping — from single buy-to-let owners to portfolio landlords with company-held structures.
The work we typically handle:
Self Assessment property pages prepared accurately — with every legitimate expense claimed and mortgage interest correctly treated as a basic-rate credit.
Quarterly digital submissions from April 2026 using compliant software. We set up the system, file each quarter, and handle the annual final declaration.
A first-pass review of what you've been claiming versus what you could be claiming. Most new landlord clients are under-claiming by 15-30%.
Full CGT computation, principal private residence relief where applicable, and the 60-day HMRC return on property disposals.
Honest, numerical advice on whether moving your portfolio into a limited company actually saves you money — including the SDLT and CGT costs of getting there.
Year-end accounts and CT600 corporation tax returns for property investment companies (SPVs), including share structures for family planning.
How to structure property ownership for tax-efficient transfer to family — trusts, gifts with retention, family investment companies.
NRL scheme compliance, gross-payment status applications, dual taxation issues for landlords living abroad with UK rental property.
From 6 April 2026, landlords whose combined rental + self-employment income exceeded £50,000 in 2024/25 must use MTD ITSA — quarterly digital submissions plus an annual final declaration. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.
For complete detail including software options, see our MTD ITSA Landlord Playbook 2026.
Since 2020, mortgage interest on personally-held residential rental property is no longer a direct expense. Instead, you get a tax credit worth 20% of the mortgage interest. For basic-rate taxpayers the net result is roughly the same; for higher-rate or additional-rate taxpayers, the tax bill rises substantially.
Pre-Section 24 (old rules):
Post-Section 24 (current rules):
Same economic profit (£7,000) but tax bill rises from £2,800 to £5,800 — a £3,000 increase. This is the entire reason "Section 24" is a four-letter phrase in landlord circles.
Section 24 only applies to personally-held property. Properties held in a limited company retain full mortgage interest deduction at corporation tax rates (currently 19-25%). For high-mortgage, high-rate-taxpayer landlords, this can be a substantial saving — but moving the property triggers stamp duty, potentially capital gains tax on the personal disposal, and adds ongoing limited-company admin and lender restrictions. We model the actual numbers before recommending either way.
Allowable revenue expenses (deducted from rental income on the property pages):
Most new landlord clients are under-claiming by 15-30% — usually mileage to properties, finance costs, replacement of domestic items, and small repair work paid in cash. A 30-minute review pays for itself, often many times over.
Book a free review callWhen you sell a UK residential rental property, the gain is taxable as Capital Gains Tax. Key 2026/27 facts:
Gain = Sale price − (Purchase price + Acquisition costs + Capital improvements + Selling costs)
| Item | Example |
|---|---|
| Sale price | £380,000 |
| Original purchase price | − £220,000 |
| Original SDLT and legal costs | − £9,500 |
| Loft conversion 2019 | − £38,000 |
| Selling costs (agent, legal) | − £6,000 |
| Gross gain | £106,500 |
| Less annual exempt amount | − £3,000 |
| Taxable gain | £103,500 |
| Tax at 24% (higher-rate band) | £24,840 |
Don't forget Principal Private Residence (PPR) relief if you ever lived in the property yourself. The period of personal occupation (plus the final 9 months) is exempt from CGT, even if the property has subsequently been rented out for years. This relief can reduce a big gain to almost nothing in the right circumstances.
The Furnished Holiday Letting tax regime was abolished from 6 April 2025. Properties previously qualifying as FHLs are now treated as standard rental property for income tax, capital gains tax and pensions purposes.
If you had FHL property pre-2025 and have a complex transition position (capital allowances pools, mortgage refinancing during the year, etc.), get advice on how to handle the transitional rules properly — the year of change is where errors are most likely.
Moving a personal property portfolio into a limited company is one of the most-discussed tax planning topics in landlord circles. It's also one of the most over-recommended. Honest answer:
| Cost | Typical impact |
|---|---|
| SDLT on transfer | 5%+ surcharge on residential, no relief for connected-party transfer (with rare exceptions) |
| Personal CGT on disposal | 18-24% on the accumulated gain — can be substantial on older property |
| Remortgaging costs | Personal mortgages redeemed, new limited-company BTL mortgages arranged at typically higher rates |
| Set-up costs | Limited company incorporation, legal fees on transfer, accountancy setup |
| Ongoing costs | Annual accounts, corporation tax return, confirmation statement, higher ongoing accountancy fees |
The honest summary: incorporation makes sense for a specific landlord profile. For everyone else, it's expensive theatre. We model your actual numbers (both options, projected 10 years) before recommending either way — not because the right answer is hard to find, but because the wrong answer is genuinely expensive.
Not strictly — rental income can be reported on Self Assessment without help. But MTD ITSA changes this from April 2026 onwards for landlords with gross income above thresholds, who must submit quarterly digital updates. Even one property below threshold can benefit from an accountant for correct expense claims, mortgage interest treatment, and CGT planning when selling.
From 6 April 2026 for landlords whose combined rental and self-employment income exceeded £50,000 in 2024/25. From April 2027 the threshold drops to £30,000, and April 2028 to £20,000. Quarterly digital submissions plus an annual final declaration. See our MTD ITSA landlord guide for full detail.
Not as a direct expense for personally-held property since the 2017-2020 phase-out. Mortgage interest is now restricted to a 20% basic-rate tax credit rather than a deduction. For higher-rate taxpayers this materially increases the tax bill. Properties held in a limited company retain full mortgage interest deduction at corporation tax rates.
It depends. Incorporation can save tax for higher-rate landlords by restoring full mortgage interest deduction and accessing lower corporation tax rates, but triggers SDLT on transfer (usually 5%+ surcharge), potentially CGT on the personal disposal, and additional admin and lender restrictions. We model both options before recommending — for portfolios under £500k the costs often exceed the savings.
Letting agent fees, building & contents insurance, ground rent and service charges, repairs and maintenance (not improvements), accountant fees, advertising for tenants, legal fees for short leases, council tax / utilities during void periods, mileage to visit properties, replacement of domestic items. Mortgage interest is treated separately as a basic-rate credit.
From 6 April 2025, the FHL tax regime was abolished. FHL properties are now treated as standard rental property for income tax, CGT and pensions. Previously favourable treatments — capital allowances on furniture, mortgage interest as direct deduction, Business Asset Disposal Relief on sale — are no longer available.
Gain = sale price − (purchase price + buying costs + capital improvements + selling costs). The first £3,000 is the 2026/27 annual exempt amount. The remaining gain is taxed at 18% (basic rate) or 24% (higher / additional rate) for residential property. Must be reported and paid through HMRC's 60-day CGT-on-property service.