Acting for over several hundred property investors, ranging from private landlords to corporate owners of high value residential and commercial portfolios, our team has extensive experience in this area.

In these times of soaring mortgate rates and reduced tax relief for landlords, it's important to make informed decision. Our latest guidance discusses the pros and cons of investing in buy-to-let in 2023.

For a free initial meeting to discuss how we can help you contact us online or call us on T: 023 9248 4356T: 023 9248 4356

Subscribe Now

Landlord accountants and tax advisers

Landlords face a range of accountancy and tax issues which have never been more complex than now to navigate.  Previously, many investors have seen steady growth in both property values and rental income while enjoying a relatively attractive tax relief on financing costs. 

Recent changes to the tax system are now prompting property investors to seriously reconsider how to structure or restructure their businesses with a view to minimising their tax liabilities.

Some landlords are moving their properties into a company and purchasing any additions to their portfolio through the same company.  While this may be the best course of action for some, the options need to be evaluated on an individual basis.

For those just starting their property businesses it is essential to consider how tax might affect the returns they achieve.

Changes to Income Tax Relief

A key issue is the restriction of tax relief to the basic rate for investors buying property in their own names. These rules do not apply to corporate landlords. 

Highly geared investors could find they are paying tax on non-existent profits but there are some actions that might be taken to mitigate this.

For married couples and those in a civil partnership, joint ownership might be considered.  This is particularly attractive if one of the owners is not fully utilising their personal allowance and basic rate income tax band.

Interest relief restrictions do not apply to furnished holiday lettings and some property investors are switching their buy to lets to take advantage of this.  To qualify, properties must be available for letting for at least 210 days and actually let for 105 days but no more than 31 days to the same occupants in a tax year.  

Sometimes it is possible to rearrange borrowings, particularly if the owners are involved in other businesses that have borrowings.

Making Tax Digital for Income Tax (MTD for ITSA)

From April 2026 HMRC's Making Tax Digital for Income Tax will affect landlords with annual gross income of over £50,000 (reduced to £30.000 from April 2027). Under the scheme taxpayers will need to use MTD-compatible software to send a summary profit report to HMRC once every three months. The annual tax return will still be required but will be known as the end of period statement (EOPS).

You can find more on our Making Tax Digital for Income Tax page

Corporate Landlords

The restriction of the deductibility of finance costs does not apply to corporate landlords.  A company can deduct all the interest and finance costs in calculating the taxable profits of its property investment business.

However, a company may find it has to pay a higher rate of interest or have more difficulty securing mortgages on its rental properties.  Lenders could insist that the directors of the company provide personal guarantees before advancing loans to the company.

The advantages of investing in property through a limited company largely depend on how long you intend to hold the property for.  If you are owning the property for the long term, the main advantages of investing through a company may include:

  • Tax on disposal - companies pay corporation tax which is less than the higher rate of personal capital gains tax. 
  • Roll-up of profits - the profits made by the property can be retained by the company (after corporation tax) until extraction at a later date, such as retirement. 
  • Disposal as an active property rental business - the company can be sold as an active business meaning any gain made is liable to corporation tax, which is more favourable than capital gains tax paid by an individual. 
  • Succession planning - shares in the company can be passed on more easily than a share in a privately held investment property.

You can find out more about the pros and cons of operating a residential buy-to-let property through a company in our advice guide

Capital Gains Tax Reporting

Changes to Capital Gains Tax rules for property owners, introduced on 1 April 2020, meant for disposals of UK residential property completed on and after that date, UK taxpayers have had to submit a CGT tax return and pay any monies due to HMRC within 30 days.

In the Autumn Budget announced on 27 October 2021, the deadline was extended to 60 days. However, the 30 day rule will still apply to disposals completed before 27 October 2021.

For ways to mitigate your Capital Gains tax bill when selling a residential property, see our latest guide: CGT on Buy-to-Let 

How we can help

As specialist landlord accountants we provide a comprehensive range of services for property investors. For more information visit our property accountants page.

If you are interested in becoming a client of Morris Crocker, please contact us on 023 9248 4356 or you can use the enquiry form at the top of this page.

Request a Quote

Email Address:
Contact Number:
Services interested in:

Nature of your business:
Enquiry: (Please add details to help us understand your requirements)

Yes please keep me updated on small business news and events from Morris Crocker.

Please confirm you are human:

REF: MC/RQ/1.7

Property Landlords Key Contact

Paul Underwood, Director

Paul has many years of experience in advising property investors and developers on the ever-changing aspects of accounting and tax legislation. In that time he has gained an in-depth knowledge of the commercial and residential property market.  By providing guidance on the most appropriate ownership structure Paul helps property businesses to minimise their tax liabilities and achieve their long term aims.

T:023 9248 4356

Stuart Mackie, Director

Stuart offers practical tax planning and accounting advice to owners of property management businesses and landlords. Working closely with clients, Stuart gains a clear understanding of their current and future business needs and offers advice on property tax and capital gains tax. He also advises on, and helps plan for, changes in legislation that may affect landlords.

T:023 9248 4356

What our clients say...

We have been fortunate to have Morris Crocker supporting our internal payroll administration for over 10 years. All members of staff we have dealt with at Morris Crocker have been efficient, knowledgeable and polite and have provided an excellent payroll service to our business.

Latest news...


Fees charged on pension pot

Data published by investment adviser Moneyfarm has suggested that 50% of pension savers are unaware they are paying charges on their pension pots.


Newsletter Sign Up

Sign up to keep in touch to receive our latest news and industry updates.

Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.

REF: MC/NL/1.2