UK Property Investment Calculator 2025/26.

The Stamp Duty Land Tax additional dwelling surcharge increased from 3% to 5% on 30 October 2024. This applies to the whole purchase price of any additional residential property (BTL, second home, holiday let). Combined rates for additional properties: 5% on £0-£125K, 7% on £125K-£250K, 10% on £250K-£925K, 15% on £925K-£1.5M, and 17% above £1.5M. For a £300,000 BTL purchase the SDLT bill is now £20,000.

Section 24 prevents personally-owned BTL landlords from deducting mortgage interest from rental income for tax purposes. Instead you receive a 20% tax credit on mortgage interest paid. For higher rate (40%) and additional rate (45%) taxpayers this dramatically reduces net profit because you pay tax on gross rent minus expenses (excluding mortgage interest), only getting partial relief back. Highly-leveraged BTL portfolios can become loss-making after tax. Holding through a limited company SPV avoids Section 24 entirely.

The Furnished Holiday Lettings (FHL) regime was abolished from 6 April 2025. Holiday let properties no longer enjoy preferential tax treatment — they're now treated as standard residential rentals. This means: Section 24 mortgage interest restriction now applies, capital allowances on furniture removed (replaced with limited 'replacement of domestic items' relief), pension-relevant earnings status removed, no more capital gains tax reliefs (Business Asset Disposal Relief, rollover relief). Existing holiday let owners face significantly higher tax bills from 2025/26 onwards. Many are now selling, switching to long-term lets, or restructuring through limited companies.

It depends on your tax band, leverage level, and long-term plans. Limited company SPVs avoid Section 24 (mortgage interest fully deductible against profits), but profits are taxed at 19-25% Corporation Tax then taxed again as dividends when extracted. For higher rate taxpayers with leveraged portfolios, limited company is often more tax-efficient. For basic rate taxpayers with low leverage, personal name is usually simpler. Setup costs around £695 plus mortgage rates are typically 0.5-1% higher for limited company BTL. We model this for clients in our £395 Tax Planning Workshop.

Yes — from 6 April 2026, landlords with qualifying property income above £50,000 (combined with any self-employment income) must file quarterly digital submissions to HMRC under Making Tax Digital for Income Tax. From April 2027 the threshold drops to £30,000. This means 4 quarterly submissions plus a final declaration instead of one annual return. We handle this for £150 per quarter covering all four quarters and the final declaration.

For 2025/26: residential property gains are taxed at 18% for basic rate taxpayers and 24% for higher rate (down from 28% in April 2024). Annual exempt amount is £3,000. The gain is calculated as sale price minus purchase price minus stamp duty paid minus capital improvements minus selling costs. You must report and pay within 60 days of completion using HMRC's online property tax service. We file CGT returns from £350 per disposal.

London typically offers lower rental yields than the rest of the UK due to high property prices. Outer London boroughs typically yield 4-5% gross (Newham, Barking, Croydon). Inner-East and South London 4-5% (Hackney, Lewisham, Greenwich). Central London prime areas often only 2.5-3.5% gross (Westminster, Kensington, Chelsea). North-West London boroughs 4-5% (Brent, Ealing). Capital growth historically averages 3-5% per year long-term in London but is volatile. Always model conservatively and stress-test for void periods and rate rises.

Yes — Section 24 only applies to residential property held in personal name. Commercial property income (offices, retail, warehouses) allows full deduction of mortgage interest from rental income for tax purposes. This is one reason commercial property remains attractive for higher rate taxpayers. However, commercial property typically has longer void periods, requires more active management, and involves more complex VAT considerations. Our limited company package covers commercial property accounting from £695/year.

From April 2025, the standard residential SDLT bands are: £0-£125K at 0%, £125K-£250K at 2%, £250K-£925K at 5%, £925K-£1.5M at 10%, and above £1.5M at 12%. First-time buyers get relief — 0% on first £300,000 and 5% on £300,001-£500,000 (no relief if price exceeds £500K). The 5% additional surcharge does not apply to your only home or a genuine replacement of your main residence.

Five core services for landlords. (1) Self-assessment with rental property pages from £349. (2) MTD for Income Tax quarterly compliance from £150/quarter for landlords above £50K. (3) Limited company SPV accounts from £695/year for properties held through a company. (4) CGT computation and 60-day reporting from £350 per disposal. (5) Tax Planning Workshop at £395 for portfolio-level strategy including personal vs limited company comparison, Section 24 mitigation, and MTD readiness. We are not FCA-authorised so we don't recommend specific properties or developments.