Property Accountants

Accounting for Property Investors & Landlords

Property investment involves some of the most complex tax rules in the UK system. Section 24 mortgage interest restrictions, the 60-day CGT reporting window, SDLT surcharges, ATED for higher-value properties and the furnished holiday let regime all require specialist knowledge.

CFA Accountants provides specialist property tax and accounting support for individual landlords, property partnerships and portfolio investors — helping you stay compliant, plan effectively and understand the full tax position of your portfolio.

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We Support

Individual buy-to-let landlords

HMO (house in multiple occupation) owners

Holiday let owners

Property portfolio investors

Property developers

Property trading companies

Landlords considering incorporation

Core Services

What We Provide for Property Investors

Rental Accounts & Self Assessment

Annual rental income and expenditure accounts and self-assessment tax returns covering all property income and deductions.

Capital Gains Tax Reporting

CGT calculations for property disposals and 60-day CGT reporting for UK residential property sales.

Section 24 Planning

Mortgage interest restriction analysis and tax planning for landlords affected by the Section 24 rules.

SDLT Advice

Stamp Duty Land Tax calculations, higher rates for additional dwellings and reliefs for property transactions.

Furnished Holiday Let Accounting

FHL qualifying conditions review, accounts and tax returns for UK and overseas holiday lets.

Portfolio Structuring

Advice on holding properties personally, in partnership or through a limited company — with tax modelling.

ATED Returns

Annual Tax on Enveloped Dwellings returns and relief claims for properties held in companies above the threshold.

Bookkeeping & Records

Property-specific bookkeeping, rental income tracking and expense categorisation for accurate tax reporting.

Section 24 — Mortgage Interest Restriction

Since April 2020, individual landlords can no longer deduct mortgage interest as a business expense from their rental income. Instead, they receive a basic rate (20%) tax credit on finance costs. This is known as Section 24 of the Finance (No.2) Act 2015. HMRC's guidance explains how the restriction works.

The impact of Section 24 depends on your tax rate. Higher-rate taxpayers are most significantly affected because:

Rental profits are now higher (mortgage interest not deducted)

This pushes more income into higher-rate tax bands

The 20% credit only partially offsets the additional tax

Some landlords pay tax on a "profit" when they are actually making a cash loss after mortgage payments

Planning options include incorporating the property portfolio into a limited company (where finance costs remain fully deductible), transferring properties to a spouse in a lower tax band, or restructuring the portfolio to reduce mortgage exposure. Each option has significant tax implications that need careful modelling.

Capital Gains Tax on Property

When you sell a UK residential property that is not your main home, Capital Gains Tax applies to the gain. For 2026/27, HMRC's CGT rates for residential property are 18% (basic rate) and 24% (higher rate). The annual CGT exempt amount for 2026/27 is £3,000.

60-day reporting rule: Since October 2021, HMRC requires UK residents to report and pay CGT on UK residential property disposals within 60 days of completion. Missing this deadline results in an automatic penalty and interest charges. CFA can prepare the CGT computation and file the return within the required timeframe.

CGT computation for property sales

60-day CGT reporting and payment

Principal Private Residence (PPR) relief review

Lettings relief where applicable

Annual exempt amount planning

Timing of disposals for tax efficiency

Loss relief and offset against other gains

Stamp Duty Land Tax (SDLT)

SDLT on residential property is charged at rates from 0% to 12% depending on the purchase price. Since April 2016, purchases of additional residential properties attract a 3% SDLT surcharge on top of standard rates. For 2026/27, this remains in place and applies to buy-to-let and second home purchases.

SDLT calculation for property purchases

Higher rate (3% surcharge) analysis for additional dwellings

Multiple dwellings relief where applicable

Mixed-use property SDLT treatment

SDLT on transfers into a limited company

SDLT on partnership restructuring

Furnished Holiday Lets (FHL)

Furnished holiday lets that meet HMRC's qualifying conditions have historically received more favourable tax treatment than standard buy-to-let properties. The property must be available to let for at least 210 days per year, actually let for at least 105 days per year, and let commercially.

Important: The FHL regime was abolished with effect from 6 April 2025. Properties previously qualifying as FHLs are now treated as standard property lettings for tax purposes from that date. If you previously held FHLs, we can review the impact on your tax position and identify any transition planning opportunities.

Property Portfolio Incorporation

Transferring a property portfolio into a limited company can allow full mortgage interest deductibility, access to lower corporation tax rates on retained income and more flexible profit extraction. However, the transfer itself can trigger CGT and SDLT, and HMRC has specific rules on partnership-to-company incorporations using Partnership Incorporation Relief.

Tax modelling — personal ownership vs limited company

CGT on transfer of properties to a company

SDLT analysis on incorporation

Mortgage lender consent requirements

Setting up the property holding company

Ongoing tax compliance for the property company

Annual Tax on Enveloped Dwellings (ATED)

ATED applies to UK residential properties worth more than £500,000 that are held by companies, partnerships with corporate members or collective investment vehicles. The annual charge depends on the property value and must be reported and paid by 30 April each year. Reliefs are available for property rental businesses, property developers and others.

ATED return preparation and submission

Property valuation review for ATED purposes

Relief claims (rental business, development, etc.)

ATED-related CGT on property disposals

Advice on restructuring to reduce ATED exposure

Common Questions

Property Tax — Frequently Asked Questions

Allowable deductions from rental income include letting agent fees, property management costs, repairs and maintenance (not improvements), insurance, service charges, ground rent, accountancy fees and the costs of advertising for tenants. HMRC's property income guidance sets out what qualifies. Note that mortgage interest is no longer deductible for individual landlords — it is replaced by a 20% basic rate tax credit under Section 24.

Section 24 restricts individual landlords from deducting mortgage interest from their rental profits. Instead, you receive a basic rate (20%) tax credit on finance costs. Higher-rate taxpayers are most affected — they previously deducted interest at 40% or 45% relief but now only receive 20%. This can significantly increase the tax on rental income even where cash flow has not improved.

Yes. Since October 2021, UK residents must report and pay CGT on UK residential property disposals within 60 days of completion. This is separate from Self Assessment and applies even if the gain is below the annual exempt amount (though no tax is payable in that case). The penalty for late reporting starts at £100. We can prepare the CGT calculation and file within the 60-day window.

For 2026/27, HMRC's CGT rates on residential property are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. The annual CGT exempt amount is £3,000. Your CGT rate depends on your total taxable income in the year — gains that fall within the unused basic rate band are taxed at 18%, with the remainder at 24%.

This depends on several factors: your tax rate, the number of properties, your mortgage situation and your long-term plans. A limited company can be beneficial because mortgage interest remains fully deductible, corporation tax (19–25%) is often lower than personal income tax rates and profits can be retained and reinvested at lower tax cost. However, transferring existing properties into a company can trigger CGT and SDLT. We model both scenarios before making any recommendation.

Since April 2016, purchases of additional residential properties (buy-to-let and second homes) attract a 3% SDLT surcharge on top of standard SDLT rates. For example, a £250,000 buy-to-let purchase incurs SDLT of £10,000 (including the 3% surcharge) compared to £2,500 for a main home purchase. The surcharge also applies to transfers of properties into a limited company in most cases.

ATED (Annual Tax on Enveloped Dwellings) applies to UK residential properties worth more than £500,000 held by companies or certain other non-natural persons. The annual charge ranges from £4,150 to £269,450 depending on property value. Most property rental businesses can claim relief from the charge, but the return must still be filed by 30 April each year. Missing the filing deadline results in penalties even where relief is available.

The Furnished Holiday Let (FHL) regime was abolished from 6 April 2025. Properties previously qualifying as FHLs are now treated as standard residential lettings. This means FHL owners lost access to Capital Allowances, Business Asset Disposal Relief and the ability to make pension contributions from FHL income. If you previously operated FHLs, we can review your current tax position and identify any available transition planning.

Transparent Pricing

Fixed-fee accountancy for property investors and landlords

All fees agreed upfront following a free consultation. No hourly billing, no surprises.

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Rental accounts, CGT reporting, Section 24 planning and portfolio structuring for landlords and property investors across Manchester and Greater Manchester.

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Property Accountants in Manchester