Property tax newsletter
Exploring the latest property tax developments, planning opportunities and compliance obligations for landlords, property owners and real estate businesses.
July 2026
This latest update looks at the key property tax issues now moving up the agenda for landlords, property owners and real estate businesses.
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.
Making Tax Digital for Income Tax
The first quarterly reporting deadline is approaching. Understand who is in scope, key requirements and how to prepare for MTD for Income Tax.
Making Tax Digital for landlords
Discover the changes to record-keeping and reporting obligations for landlords from 6 April 2026 and what they mean for your property income.
Preparing for MTD as a landlord
Mark Stemp, Partner in Crowe UK's Private Clients team, presented a webinar on the upcoming MTD requirements for landlords and the practical steps to take before the rules come into effect.
Landlords facing a rental income 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.
The key drivers behind this shift include:
- 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.
Discover what these changes could mean for landlords and investors in our insight.
INSIGHT
UK rental squeeze
Rising costs, regulatory reform and changing tax rules are reshaping the rental market. Discover what landlords need to consider in 2026 and beyond.
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.
guide
Purchasing property
Compare the tax implications of personal and corporate ownership, including rental profits, mortgage interest relief, capital gains and succession planning.
GUIDE
Family Investment Companies
Discover how a Family Investment Company can support family wealth planning while offering income tax and inheritance tax advantages.
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.
Inheritance Tax and Succession Planning in 2026
Explore practical examples and key considerations to help you prepare for the evolving inheritance tax landscape.
Inheritance Tax and Succession Planning in 2026
Inheritance Tax in 2026
Understand the reliefs for businesses, agricultural property, as well as the impact on Trusts and upcoming pension changes in 2027.
Inheritance Tax in 2026
Hub
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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