London landlord
accountants.
Specialist tax and accounting for London's buy-to-let landlords and property investors — Section 24, CGT reporting, limited company structuring, and more.
Who We Help
We work with landlords across London — from single-property buy-to-let investors to portfolio landlords with dozens of units. Our clients include:
London's property market creates complex tax situations — high values mean large capital gains, Section 24 bites hardest on higher-rate taxpayers, and the SDLT surcharge adds significant cost to portfolio expansion. Getting the tax right requires specialists who understand property.
Key Tax Issues for London Landlords
Section 24 — mortgage interest restriction. Since April 2020, individual landlords can no longer deduct mortgage interest from rental income. Instead, you receive a 20% tax credit. For a higher-rate taxpayer, this can effectively double the tax on rental profit even if the cash position hasn't changed. We model the Section 24 impact on your exact figures and advise on timing, structuring, and whether limited company ownership changes the picture.
Capital gains tax on property disposals. Residential property gains are taxed at 18% (basic rate) or 24% (higher rate) from October 2024 — and must be reported and paid within 60 days of completion via HMRC's Capital Gains Tax UK Property Account. We handle the filing and calculate the gain accurately, applying principal private residence relief, lettings relief where applicable, and any available losses.
Limited company structuring. Holding property in a company preserves full mortgage interest deductibility and caps tax at 25% corporation tax, but transferring existing properties triggers SDLT and potentially CGT. For landlords building a new portfolio or considering incorporation, we run a full cost-benefit analysis. Read our landlord tax guide for a detailed worked example.
Our Landlord Services
A landlord accounting engagement with Brathwaite covers:
Fixed fee, agreed upfront. We'll tell you exactly what you're paying before we start.
Frequently Asked Questions
How is rental income taxed in the UK?
Rental income is taxed as part of your total income for the year, after deducting allowable expenses. The tax rate depends on which income tax band the rental profit falls into — 20% (basic rate), 40% (higher rate), or 45% (additional rate). Since April 2020, mortgage interest relief has been restricted for individual landlords under Section 24, meaning you can no longer deduct mortgage interest directly from rental income — instead you receive a 20% tax credit. This has significantly increased tax bills for higher-rate landlords.
What expenses can I deduct against my rental income?
Allowable expenses include: letting agent fees, maintenance and repairs (not improvements), buildings and contents insurance, ground rent and service charges, accountancy fees, advertising costs, and council tax and utilities if paid by you during void periods. Mortgage interest is no longer a direct deduction — it is replaced by a 20% tax credit under Section 24. Capital improvements (extensions, new kitchens) are not revenue deductions but may reduce a capital gains tax liability on eventual sale.
Should I hold my rental properties in a limited company?
For landlords paying higher-rate income tax who intend to retain profits and grow a portfolio, incorporation can offer significant tax advantages — corporation tax at 25% versus 40%/45% income tax, and full mortgage interest deductibility within a company. However, there are costs: transferring existing properties into a company triggers SDLT and potentially CGT, and the annual administration overhead increases. We run the full numbers for your situation — including rental income, mortgage levels, and long-term plans — before making a recommendation.
What is the 60-day CGT reporting requirement?
Since October 2021, landlords who sell a UK residential property must report and pay any capital gains tax within 60 days of completion. This applies even if the gain falls below the annual CGT exempt amount (though a nil return is still required). Missing the deadline triggers automatic penalties starting at £100. We handle the online Capital Gains Tax UK Property Account filing and calculate the tax due, taking into account all available reliefs.
Let's talk.
Expert property tax advice.
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