Property Tax News
Exploring the latest property tax developments, planning opportunities and compliance obligations for landlords, property owners and real estate businesses.
July 2026
Against a backdrop of ongoing property tax reform, understanding the latest developments can help inform both immediate decisions and long-term planning.
In our Spring 2026 newsletter, we followed up on what changes were implemented in the Autumn Budget and the priorities that landlords, property owners and real estate businesses should focus on. This update provides further commentary on areas of focus that are of particular relevance at the present time.
Making Tax Digital (MTD)
MTD has now been introduced for landlords with property income exceeding £50,000 from April 2026.
With the first quarterly submission (for the period to 5 July 2026) due by 7 August 2026, affected landlords should by now have:
- registered for MTD
- implemented compatible software to enable digital record keeping and submissions.
Early engagement is key, and landlords should ensure they are fully prepared to meet ongoing quarterly reporting obligations and avoid unnecessary compliance risks.
Learn more about Making Tax Digital for Income Tax and how we support our clients.
Mark Stemp, Partner in Crowe UK's Private Clients team, also presented a webinar on MTD for landlords on 7 May. The webinar is now available to view on-demand.
Making Tax Digital for landlords
Discover the changes to record-keeping and reporting obligations from 6 April 2026.
UK rental squeeze
The UK residential property market has experienced significant transformation in recent years, with a range of legislative, tax and economic changes placing increasing pressure on landlords.
Our latest insight on the UK rental squeeze highlights the key drivers behind this shift, including:
- Regulatory reform – proposed rental reforms (including the removal of Section 21 and fixed-term tenancies) are increasing uncertainty around income stability.
- Rising costs and reduced yields – mortgage interest relief restrictions, alongside higher interest rates and inflation, are reducing profitability for many landlords.
- Additional compliance obligations – stricter energy efficiency requirements (EPC C targets) and local licensing regimes are adding to ongoing costs and administrative burdens.
- Tax pressures on investment – higher SDLT surcharges and potential CGT changes are discouraging new investment and prompting some landlords to exit the market.
Together, these factors are contributing to a tightening of rental supply and a more complex operating environment for landlords.
Income Tax planning - back to basics
Alongside wider regulatory and market changes, income tax continues to be a key driver of reduced returns for landlords. The gradual restriction of reliefs, combined with expected increases in tax rates on rental income, is further eroding net yields and prompting many landlords to reassess how they hold and manage property portfolios.
Practical planning points
- Reviewing ownership structures: Reassess whether to hold properties personally or via a company. With increasing tax on rental income and ongoing reforms, structure choice now has a bigger long-term impact on net returns.
- Gifting and income spreading: Where appropriate, transferring property interests between spouses or family members may help to utilise lower tax bands and maximise overall after-tax income. This should be considered in light of both tax and broader estate planning objectives.
- Timing of expenditure: The increase in tax rates for property income may increase the benefit in bringing forward deductible expenditure (such as repairs and maintenance) to achieve tax relief at higher marginal rates. This requires a careful distinction between capital and revenue costs.
- Planning capital projects: For landlords considering refurbishments or improvements, the timing of these projects can have a material tax impact. Aligning expenditure with periods of higher taxable income may improve relief, while also ensuring compliance with evolving EPC requirements.
Overall, the direction of travel suggests increased taxation on rental profits, meaning proactive planning around structure, timing, and cashflow is becoming increasingly important.
Our purchasing property guide gives a high-level overview of the advantages and disadvantages of owning a property in your own name or using a corporate structure, whilst considering succession planning to integrate.
In addition, our insight on Family Investment Companies (FICs) explains how FICs can be helpful for income taxes and also IHT.
Inheritance Tax and Succession Planning in 2026
Following the implementation of the cap on Inheritance Tax (IHT) reliefs from 6 April 2026, succession planning for both family business owners and real estate businesses is more important than ever.
Our on-demand webinar, Inheritance Tax and Succession Planning in 2026, provides practical examples of planning that has been implemented so far, and ongoing issues that are being considered, as well as highlighting some of the key considerations to help you navigate the new landscape with further changes on the horizon
Topics discussed
- Key succession tax issues affecting real estate and family businesses in 2026 and beyond.
- Agricultural and business relief changes and the impact of the new landscape, planning opportunities to consider, and financing of the tax charges.
- Proposed pension changes from April 2027 and its impact and how they are expected to operate in practice, particularly those with real estate held through a pension.
- Opportunities for gifting and restructuring your interests such as exploring joint ownership, Trusts and family investment company structures.
There is also an Inheritance Tax in 2026 insight available covering these points.
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Property Tax Toolkit
Our Property Tax Toolkit gives you clear, practical guidance to help you navigate property tax with confidence. Built for estate agents, letting agents, solicitors, and other professionals, it makes addressing tax considerations simple and stress-free.
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