PROPERTY BUSINESS
Limited Company or Individual
You could be running your property business in a Limited Company or in your own (or joint) names. Either way, the regulations are ever-changing.
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ARE YOU READY TO GET DIGITAL?
Starting in 2026, all self-employed businesses, sole traders, and landlords with income exceeding £10,000 must comply with Making Tax Digital regulations​
THREE EASY STEPS TO HELP YOU MANAGE YOUR PROPERTY FOR YOUR ACCOUNTANT
1. Open a dedicated business account for the property business;
2. Funnel all transactions related to the property through the business bank account;
3. Hey Presto! Get a bank statement for the tax year and it includes all the necessary transactions.
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Even better is to integrate your bank account with a cloud accounting system, such as Xero.
TAX RELIEF FOR MORTGAGE INTEREST
Tax Relief for Mortgage Interest
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Tax relief on mortgage interest is restricted to the 20% tax bracket. This means, if all of your income is less than £50,270, you are not affected.
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If your earnings are greater than £50,270, despite that you pay tax at 40% or 45%, you will be restricted to a tax deduction of 20% of the mortgage interest. Despite this, you should still keep records because it's possible to carry forward unrelieved interest to future tax years.
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This restriction applies to individuals who own a residential buy-to-let. The restriction does not apply to Limited Companies that own residential buy-to-let properties.
SELLING THE PROPERTY
When you dispose of a residential property in the UK, you need to report the gain and pay the tax within 60 days after the completion date. Reporting capital gains is done outside the ordinary self assessment tax return process, therefore a separate registation and filing is required when you dispose of a residential property in the UIK.