Frequently Asked
Questions

Our approach starts before exchange of contracts. We conduct a full relief audit and use every mechanism available to reduce your liability legally, including:

• Structuring disposals across two tax years to use both Annual Exempt Amounts
• Maximising Private Residence Relief (PRR) on any property ever used as your main home
• Timing disposals to years where your income is lower — reducing rate from 24% to 18%
• Transferring a share to a spouse before sale to use their exemption too

Since October 2021, UK residents must report and pay CGT on residential property disposals within 60 days of completion — not at the end of the tax year. Missing this deadline triggers automatic HMRC penalties and interest charges. We handle the entire 60-day return on your behalf so you never face a late-filing charge.

Yes — if the property was ever your main residence, you can claim PRR for the period you lived there plus the final 9 months of ownership, regardless of whether you were living there at the time of sale. The calculation can be complex where you've had multiple main residences, but it can generate significant relief. We review every client's residential history before they sell to ensure not a penny of PRR is left unclaimed.

Following the Autumn 2024 Budget, residential property CGT rates are now 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. The rate that applies depends on your total taxable income in the year of disposal — which is exactly why disposal timing is such a powerful planning tool. We model different scenarios before you sell to find the optimal tax year.

Allowable expenses that reduce your taxable rental profit include:

• Letting agent fees and management charges
• Buildings and contents insurance premiums
• Repairs and maintenance (not improvements)
• Ground rent, service charges, and council tax where you pay it
• Accountancy and legal fees directly related to the let
• Advertising costs for finding tenants

Note: Since Section 24 was fully phased in, mortgage interest is no longer a deductible expense — instead a 20% basic rate tax credit is given. We ensure your accounts maximise every allowable deduction while navigating this correctly.

Very significantly. Before Section 24, a higher-rate taxpayer with £20,000 rental income and £15,000 mortgage interest paid tax on £5,000 profit (£2,000 tax). Now they pay tax on the full £20,000 (£8,000 tax) less a 20% credit on interest (£3,000) — a £5,000 tax bill. That's a 150% increase in tax on the same income. This is the most common trigger for our clients considering limited company incorporation, and we model the exact numbers for each individual portfolio.

From April 2025, the Furnished Holiday Lettings tax regime has been abolished. FHL properties are now taxed as standard residential lettings, losing full mortgage interest deductibility, capital allowances on furnishings, and the ability to make pension contributions from FHL profits. If you operate holiday lets, we strongly recommend booking a review call immediately to assess the impact and whether restructuring is needed.

For many higher-rate taxpaying landlords — yes, significantly so. Inside a limited company, mortgage interest remains fully deductible and profits are taxed at corporation tax rates (19–25%) rather than income tax rates of up to 45%. However, the answer is highly individual — it depends on your existing mortgage terms, personal income, whether you need to extract profits, and your long-term plans. We produce a detailed break-even model for every client before recommending incorporation.

Transferring property into a company is treated as a disposal at market value, which would normally trigger CGT. However, Section 162 Incorporation Relief can defer this CGT entirely — provided the properties form part of a genuine ongoing property business. Getting this right is complex; HMRC scrutinises these claims closely. We have successfully structured 120+ incorporations without triggering a CGT charge.

Yes — having family members as shareholders is legitimate and widely used. Dividends can be distributed to shareholders in lower tax bands, reducing the overall family tax burden. However, HMRC's settlements legislation must be carefully navigated to ensure the arrangement is commercially genuine. We structure shareholding arrangements that are both tax-efficient and fully defensible under HMRC scrutiny.

Since October 2024, the additional dwelling surcharge has increased to 5% on top of standard SDLT rates. This applies to any purchase where you already own another residential property at completion. For a £400,000 investment property, this means an extra £20,000 in SDLT. We review every acquisition in advance to confirm the surcharge applies and explore all available reliefs to reduce the overall bill.

Yes — in certain circumstances. HMRC allows amendments to SDLT returns within 12 months of the filing date. Common grounds for reclaims include: properties incorrectly assessed at residential rather than mixed-use rates, Multiple Dwellings Relief that wasn't claimed at the time, or the 5% surcharge paid where it shouldn't have applied. We review historic acquisitions going back up to four years for potential overpayments.

We manage the entire Non-Resident Landlord (NRL) scheme process — ensuring your rental income is taxed correctly in the UK, all applicable tax treaties are leveraged to avoid double taxation, and your UK filings remain fully compliant with HMRC's obligations for overseas property owners. We act as your registered UK agent for all correspondence.

Do not respond directly to HMRC without specialist advice. The language and information you provide in your first response can significantly affect the outcome of any enquiry. Contact us immediately — we take over all HMRC communication on your behalf, review your historic filings, and develop a strategy to achieve the best possible outcome. All our service plans include professional fee cover for HMRC investigations.

The Let Property Campaign is HMRC's voluntary disclosure scheme for landlords with undisclosed rental income. Disclosing voluntarily through this route results in significantly reduced penalties compared to HMRC discovering the income themselves. If you have any historic rental income that hasn't been declared, we strongly recommend taking action now. We manage the full disclosure process and negotiate the most favourable penalty terms available.