Individual landlords with one or more UK rental properties
Joint owners who need the correct rental-income split reported
Portfolio landlords who want property-by-property records and a consolidated tax view
Landlords preparing to buy, refinance, transfer or dispose of a property
Landlords moving from spreadsheets or paper records to MTD-compatible software
UK residents with overseas property income or non-residents with UK property
A separate landlord service
Property tax has its own rules and deadlines
Rental income is not treated exactly like sole-trader income. Finance-cost restrictions, joint ownership, capital expenditure, disposals and property-specific records all need landlord-focused treatment.
Aurestone reviews the property position as its own campaign and service, rather than treating a landlord portfolio as an add-on to general self-employed accounts.
Landlord Accounting Support
From annual rental accounts to major property decisions
01
Rental-Income Accounts
We organise rent, deposits retained as income where relevant, agent statements and property costs into clear rental accounts for each tax year.
02
Allowable Property Expenses
We review repairs, insurance, agent fees, service charges, utilities, professional fees and other costs, separating day-to-day expenses from capital improvements.
03
Mortgage-Interest Tax Treatment
For personally owned residential property, finance costs are not deducted like normal expenses. We calculate the available basic-rate tax reduction and track restricted costs where necessary.
04
Joint Ownership
We check the legal and beneficial ownership, the default tax treatment and whether a Form 17 declaration is relevant for spouses or civil partners with unequal beneficial interests.
05
Property Disposal & Capital Gains
Before or after a disposal, we help assemble acquisition, improvement and selling costs, estimate the gain and identify the reporting steps and deadlines that may apply.
06
MTD & Digital Records
We help landlords choose compatible software, create reliable digital records and prepare for quarterly MTD updates and the annual tax return.
Mortgage Interest
Residential finance costs need separate treatment
For an individual with residential property, qualifying mortgage interest and other finance costs are generally relieved through a basic-rate tax reduction rather than deducted in full from rental income. Mortgage capital repayments do not qualify.
The available reduction is subject to statutory limits, and unused restricted finance costs may need to be carried forward. Company-owned, commercial and mixed-use property can follow different rules.
Ownership and rental-income shares must be checked together
Married couples and civil partners living together are normally taxed equally on jointly held property income. Where genuine beneficial interests are unequal, a valid Form 17 declaration may allow the income to be taxed in those corresponding shares.
Joint ownership does not automatically create a partnership. We review the ownership evidence, income entitlement and reporting position before figures are allocated.
A sale, gift or transfer can create a capital gain. UK residential-property gains may need to be reported and paid within 60 days of completion, even though the disposal may also need to appear on your Self Assessment return.
We help assemble purchase costs, qualifying capital improvements, legal and selling fees, ownership shares and available relief information before calculating the reporting position.
See each property clearly and the portfolio as a whole
Property-by-property rent and expense records
Agent-statement and bank reconciliation
Finance-cost schedules and carried-forward amounts
Ownership and profit-share records
Portfolio tax estimates and payment planning
MTD-compatible digital record-keeping workflow
MTD for Landlords
When landlords enter Making Tax Digital for Income Tax
HMRC uses combined gross qualifying income from property and self-employment before expenses.
Qualifying income
HMRC checks
MTD start date
More than £50,000
2024–25 tax return
6 April 2026
More than £30,000
2025–26 tax return
6 April 2027
More than £20,000
2026–27 tax return
6 April 2028
Landlords in scope use compatible software to create and keep digital records, send cumulative quarterly summaries and submit the annual tax return. Check current HMRC MTD guidance.
Book a Landlord Review
Get clear next steps for your rental-property tax
01
Share your property position
Tell us how many properties you own, how they are held, what records you use and whether a purchase, refinance or disposal is planned.
02
We review the tax and records
We assess rental income, expenses, finance costs, ownership, filing obligations and MTD readiness.
03
Receive a clear action plan
You receive the recommended next steps, the records needed and a fixed quote before any paid work begins.
Landlord Tax FAQs
Property Tax and MTD — Common Questions
When must a landlord report rental income to HMRC?
The first £1,000 of gross property income may be covered by the property allowance, subject to exclusions. HMRC says you should contact them if gross rental income is more than £1,000 and up to £2,500. A Self Assessment return is normally required if rental income is more than £2,500 after allowable expenses or £10,000 before expenses. If you need to register, the usual deadline is 5 October after the relevant tax year.
Which property expenses are normally allowable?
Common expenses include letting-agent fees, landlord insurance, repairs and maintenance, qualifying legal and accountancy fees, service charges, ground rent, utilities and other direct letting costs. Capital improvements and private costs are not deducted as day-to-day rental expenses.
Can an individual landlord deduct mortgage interest?
An individual landlord of residential property does not normally deduct mortgage interest from rental income in the same way as other expenses. Instead, qualifying residential finance costs may produce a basic-rate tax reduction, subject to statutory limits. Capital mortgage repayments do not qualify.
How is income from jointly owned property taxed?
The treatment depends on the owners and the ownership arrangement. Spouses and civil partners living together are normally taxed 50:50 on jointly held property income. If their actual beneficial interests are unequal, a valid Form 17 declaration with supporting evidence may allow taxation in those corresponding shares. Other joint owners are generally taxed according to their share of the income.
What happens when I sell a rental property?
A disposal can create a taxable capital gain after allowable acquisition, improvement and selling costs and any available reliefs. UK residential-property gains may need to be reported and the tax paid within 60 days of completion. If you file Self Assessment, the disposal may also need to appear on that return.
Does Making Tax Digital apply to landlords?
MTD for Income Tax applies in stages based on combined gross qualifying income from property and self-employment: more than £50,000 from April 2026, more than £30,000 from April 2027, and more than £20,000 from April 2028. Landlords in scope use compatible software for digital records, quarterly updates and the annual tax return.
Can Aurestone support a portfolio with several properties?
Yes. We can organise property-by-property income and costs, reconcile agent statements, monitor the portfolio's overall tax position and prepare the figures needed for Self Assessment and MTD.
How much does landlord accounting support cost?
The fee depends on the number and type of properties, ownership arrangements, record quality, finance costs and whether disposal or catch-up work is required. We review the position first and agree a fixed quote before starting paid work.
Understand your landlord tax position before the next deadline
Book a landlord tax review to discuss your properties, ownership, records, mortgage interest, planned disposals and MTD start date.
