Quick answer: A landlord accountant prepares your rental accounts and self assessment, applies the Section 24 finance-cost rules correctly, reports property sales to HMRC within the 60-day capital gains deadline, and advises on whether holding property in a company would save you tax. Bayar Hughes & Co has advised London landlords from New Eltham SE9 since 1991.
Rental Accounts and the Section 24 Mortgage Interest Rules
Individual landlords can no longer deduct mortgage interest and other finance costs from rental profits. Under Section 24, relief is instead given as a basic-rate (20%) tax credit against your bill. That change quietly pushes many landlords into higher tax brackets, because taxable rental profit is now calculated before interest — some people pay higher-rate tax on income they never actually received.
We prepare accurate rental accounts for each property, apply the finance-cost credit correctly, and distinguish deductible repairs from capital improvements — one of the most common and expensive mistakes landlords make. Where you let jointly with a spouse or civil partner, we also review whether the split of income between you is working in your favour.
Selling a Property: Capital Gains Tax and the 60-Day Rule
When you sell a UK residential property at a gain, you cannot simply wait for your next tax return. You must file a residential property return and pay the capital gains tax on account within 60 days of completion — a deadline that catches out sellers every week, with automatic penalties for missing it.
We calculate the gain properly before you exchange, so you know the tax cost in advance: acquisition and selling costs, capital improvements over your ownership, any lettings or private residence relief for periods you lived there, and your annual exempt amount. Then we file the 60-day return and reconcile it with your self assessment at year end. If you are planning a sale, talk to us before you instruct agents — timing and ownership decisions made early can materially change the bill.
Company Ownership, Holiday Lets and Making Tax Digital
Because companies still deduct interest in full and pay corporation tax rather than income tax, holding property through a limited company has become popular — but incorporating an existing portfolio can trigger capital gains tax and stamp duty land tax on the transfer, and mortgage costs are often higher for companies. It suits some landlords, particularly higher-rate taxpayers building a long-term portfolio, and is a mistake for others. We model both routes with your actual numbers before you commit.
Two more changes every landlord should have on the radar:
- Furnished holiday lets: the special FHL tax regime was abolished from April 2025, ending its advantages on interest relief, capital allowances and capital gains reliefs — holiday-let owners now broadly follow the normal property rules and should revisit their position.
- Making Tax Digital: from April 2026, landlords with combined property and self-employment income over £50,000 must keep digital records and send HMRC quarterly updates, with the threshold due to fall to £30,000 from April 2027. We get clients onto suitable software early.
Services for Landlords & Property Investors
Self Assessment Tax Returns
Accurate, stress-free tax returns for sole traders, landlords, directors and high earners …
Capital Gains Tax
CGT planning and reporting for property sales, shares and business disposals — including t…
Tax Planning
Proactive personal and business tax planning — pay what you owe, and not a penny more.…
Bookkeeping Services
Cloud bookkeeping on Xero, QuickBooks or Sage — tidy, accurate books all year so tax time …
Company Formation
Hassle-free company formation — multi-jurisdiction incorporation, registrations and everyt…
Frequently Asked Questions
Do I need an accountant as a landlord?
Once you have rental income, you almost certainly need to file a self assessment — and the rules on finance costs, repairs versus improvements and capital gains are easy to get wrong. An accountant typically saves more than their fee through correct claims and planning, especially with multiple properties.
How does Section 24 mortgage interest relief work?
You can no longer deduct mortgage interest from rental profits. Instead you receive a tax credit worth 20% of your finance costs. Higher-rate taxpayers therefore get less relief than under the old rules, and some basic-rate landlords are pushed into higher bands because profits are measured before interest.
When do I have to report capital gains tax on a property sale?
For UK residential property sold at a taxable gain, you must file a return and pay the CGT on account within 60 days of completion, separately from your annual tax return. Penalties apply automatically for late filing. We prepare the computation and file the 60-day return for clients.
Should I put my rental properties in a limited company?
Sometimes. Companies deduct interest in full and pay corporation tax, which can beat income tax for higher-rate landlords reinvesting profits. But transferring existing properties can trigger CGT and stamp duty, and company mortgages cost more. We model your actual numbers before recommending either route.
Does Making Tax Digital apply to landlords?
Yes. From April 2026, landlords with combined gross property and self-employment income over £50,000 must keep digital records and send quarterly updates to HMRC, with the threshold expected to drop to £30,000 from April 2027. We set landlords up on compliant software well ahead of time.