18/05/2026
Last year, around 40% of landlords made less profit than expected.
Not because property underperformed. Because of the tax.
In 2026, how you own a property matters just as much as what you buy.
📌 Stamp duty
Higher for investors than residential buyers, and there's no workaround. Just a cost you need to plan for from day one.
📌 Income tax
Individual landlords can no longer fully deduct mortgage interest, while limited companies still can. That's a big reason most new buy-to-lets are now being bought through companies.
📌 Capital gains tax
Still applies when individuals sell, but through a company, profits fall under corporation tax, which changes how and when you take money out.
📌 Making Tax Digital
Individual landlords earning over £50,000 need to digitally report income to HMRC every quarter. It's not a new tax, but the admin (and penalties) are very real.
That one decision - personal name or limited company - affects your tax at every stage.
Here's a few simple tips to keep more of what you earn:
✏️ Keep clean records and claim every legitimate expense
🔧 Get invoices itemised - repairs are deductible now, improvements reduce your capital gain later
💕 If your partner earns less, consider allocating more income to them
💡 Speak to an accountant before you buy - changing structure later is expensive
