Why choose Optimise Accountants as your UK Property Accountants
We bring years of specialised experience to the table. We understand the unique financial complexities of the property market and are committed to providing property tax advice that fit your needs. Try our accountancy service today and save tax tomorrow.
Comprehensive Services
From tax planning and compliance to strategic advice, our property tax specialists offer a full suite of services designed to support your property ventures. As a landlord, you deserve the confidence and comfort in the pro active expert advice provided.
Personalised Approach
We know that every property investor is unique. We work closely with you to develop strategies that align with your goals. All of our qualified ACCA accountants are located in the United Kingdom. They ensure all emails and calls are responded to within three working days.
Streamlined Processes
Say goodbye to the hassle of managing your property self-assessments on your own. Our UK property accountants utilise cutting-edge technology and streamlined processes to make managing your filings to HMRC as smooth as possible.
Self Assessments
We will submit your self-assessment tax returns to HMRC. We will also act as your HMRC agent and provide HMRC investigation insurance as part of our fee. We will help you become more tax efficient. It is not just about submitting a self-assessment to HMRC
- A dedicated UK based qualified (ACCA) property tax accountant
- Emails answered within 3 working days
- Strategy calls booked at your convenience
- HMRC investigation covered (as part of the fee)
- Annual reviews (scheduled by you)
from £58.29
+ VAT per month
Limited Company Accounts
We will submit your limited company accounts to Companies House & tax returns to HMRC. We will also act as your HMRC agent and provide tax investigation insurance as part of our fee.
- A dedicated UK based qualified (ACCA) property tax accountant
- Emails answered within 3 working days
- Strategy calls booked at your convenience
- Registered office
- Confirmation statements
from £83.29
+ VAT per month
Non Resident landlords and UK Self-Assessments
Non-residents who own property in the UK are subject to different rules compared to UK residents. British citizens can benefit from personal allowances and potentially offset some of their rental income against these allowances.
Non-UK residents do not receive this benefit and must pay tax on their rental income at standard rates.
Additionally, non-residents are required to file a self-assessment if their income exceeds certain thresholds. They may also face different capital gains tax rules when selling property. The lack of personal allowances for non-residents can result in a higher liability compared to British citizens.
Why many landlords are using limited companies
Many landlords are turning to limited companies to manage their rental properties due to Section 24 of the Finance (No. 2) Act 2015, which restricts the relief on mortgage interest.
By holding properties through a limited company, landlords can benefit from corporation tax rates, which are typically lower than personal income tax rates, thereby reducing their overall burden. This structure also allows them to fully deduct mortgage interest as a business expense, meaning you keep more money from your property investments.
Types of tax landlords need to consider
Income Tax: Landlords must pay income tax on rental income they receive. This is calculated after deducting allowable expenses, such as mortgage interest (subject to the restrictions of Section 24), maintenance costs, and letting agent fees. Income rates vary based on the landlord’s total income, ranging from 20% to 45%.
Capital Gains Tax (CGT): When selling a rental property, landlords may be liable for CGT on any profit made. The gain is calculated based on the difference between the property’s selling and purchase prices minus allowable costs. The rates for CGT are 18% or 24%, depending on the landlord’s overall income.
Corporation Tax: If the property is owned through a limited company, the rental income is subject to corporation, typically lower than personal income tax rates. The corporation tax rate is between 19% and 25%, depending on profit levels, which are lower than person income tax rates.
Stamp Duty Land Tax (SDLT): This is payable when purchasing a property. The amount depends on the purchase price and the property’s value, with additional rates applying to second homes and buy-to-let properties.
Inheritance Tax (IHT): Properties owned by landlords may be subject to IHT tax upon their death, based on the property’s value and the overall estate. Thresholds and allowances, such as the nil-rate band and the residence nil-rate band, can affect the amount due. Many landlords now use a Family Investment Company (FIC) to save both income and inheritance tax.
There will be additional landlord tax changes from the 2025 that will be introduced by The Labour Party. Please keep up to date with the changing landscape.
Buy to let mortgage calculator: Please use our free online buy to let mortgage calculator when you are looking to finance your investment.