Stress-Free Property Accounting with Richard Riley and Associates
Whether you’re a landlord, thinking of selling a second home, or planning to buy a buy-to-let, there are some important tax changes and rules to be aware of. At Richard Riley and Associates, we’re here to help you navigate it all with clear advice and practical support.
Capital Gains Tax on Property Sales
Selling a second property or a buy-to-let? You’ll need to:
- Report the sale to HMRC
- Pay any Capital Gains Tax within 60 days of completion
This applies even if the sale doesn’t result in a huge gain or even a loss – it’s always worth checking your position before the sale goes through.
Be aware that you’ll likely pay Capital Gains Tax on the profit if you do sell. The current rates are:
- 18% for basic rate taxpayers
- 24% for higher rate taxpayers
It’s always worth reviewing your gain and any available reliefs or deductions before you sell.
Buying a Property? Your Accountant Might Need to Step In
If you’re applying for a buy-to-let mortgage, especially as someone self-employed or with rental income, lenders often ask for proof of your earnings. This usually means providing:
- An Accountant’s Certificate
- Or detailed income reports to back up your application
We’re happy to support you with this as part of our property services.
Making Tax Digital for Landlords and the Self-Employed
From April 2026, new rules will affect landlords and sole traders with income over £50,000. This is part of HMRC’s Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA). Here’s what it means:
- You’ll need to keep your rental or business records digitally
- You’ll submit quarterly updates to HMRC (turnover, costs, profits)
- At the end of the tax year, you’ll make a final declaration – replacing the Self Assessment tax return
These rules will also apply to furnished holiday lets.
We help clients get set up with compliant software, including cloud-based solutions and spreadsheet tools linked to HMRC.
Can You Still Reduce Your Tax Bill?
Yes! You can claim a range of property-related expenses, including:
- Routine repairs and maintenance
- Decorating, gardening and contents insurance
- Replacement of furniture and appliances
What you can’t claim as an income expense are improvements like new windows or extensions – those are capital costs, but they may help reduce CGT when you sell.
Mortgage Interest Relief – What’s Changed?
- You can no longer deduct mortgage interest from your rental profits
- Instead, you’ll get a 20% tax credit – this reduces your tax bill, not your taxable income
- For commercial properties, however, full interest relief still applies
Overseas Landlords – New Tax Rate
If you are an overseas landlord, renting UK property through a UK Limited Company, you should note that
- The corporation tax rate is now 25% (previously 19%)
It’s a big jump – so do get in touch if this affects you.
Need Help?
We understand that property tax can be a bit of a minefield. Whether you’re a landlord, a sole trader with a rental sideline, or simply planning your next move, we’re here to help.
Get in touch for jargon-free advice and support to help you stay on top of your obligations