Specialist HandbookUpdated for 2026 tax year

Finance, Tax & Legal Handbook

Understand your tax obligations, structure your portfolio correctly and protect your legal position.

13 chapters
5 downloads
3 How-To Guides
Plain English
Written by landlords and compliance specialists
£29£39/year

All 6 handbooks + full library included

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13 detailed chapters
Income tax on rental profits explained
Allowable expenses: the complete list
Section 24 mortgage interest restriction
Capital gains tax on disposal
Making Tax Digital for landlords
Personal vs limited company comparison
Updated for 2026 tax year
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13 Chapters

Plain English throughout

5 Downloads

Checklists, templates, action plan

3 How-To Guides

Linked step-by-step guides

England Only

Current as of May 2026

1

Income Tax on Rental Profits

How rental income is taxed, what counts as profit and the key rates.

How rental income is taxed

Rental income is taxed as property income. You pay income tax on your net rental profit — your total rental income minus your allowable expenses. The tax rates are the same as for other income: 20% (basic rate), 40% (higher rate) and 45% (additional rate).

If you have multiple properties, all rental income and expenses are pooled together as a single property business. You cannot offset losses from one property against profits from another in a different tax year.

  • Tax on net rental profit (income minus allowable expenses)
  • Basic rate: 20% (income up to £50,270 in 2025/26)
  • Higher rate: 40% (income £50,271–£125,140)
  • Additional rate: 45% (income over £125,140)
  • Personal allowance: £12,570 (2025/26) — no tax on income below this

Keep accurate records of all rental income and expenditure throughout the year. Good records make your self-assessment return straightforward and reduce the risk of errors.

Self-assessment

If your rental income exceeds £1,000 in a tax year, you must register for self-assessment and complete a tax return. The deadline for online returns is 31 January following the end of the tax year. The deadline for paper returns is 31 October.

You must also make payments on account — advance payments of your estimated tax bill — by 31 January and 31 July each year, if your tax bill exceeds £1,000.

Late filing of your self-assessment return incurs an automatic £100 penalty. Late payment of tax incurs interest and surcharges. File and pay on time.

Included Downloads

Practical documents included with this handbook.

Reference Sheet

Allowable Expenses Reference Sheet

The complete list of allowable expenses for landlords.

1 page
Template

Rental Income & Expenditure Template

A spreadsheet template for tracking rental income and expenses.

1 page
Reference Sheet

Personal vs Limited Company Comparison

A side-by-side comparison of the tax treatment of personal and limited company ownership.

2 pages
Reference Sheet

Capital Gains Tax Calculation Guide

How to calculate your CGT liability on a property disposal.

1 page
Action Plan

Annual Tax Review Action Plan

A structured annual review of your landlord tax and finance position.

2 pages

Unlock all downloads

All downloads are included with Annual Access.

Included in membership

Annual Tax and Finance Review

A structured annual review of your landlord tax and finance position.

1

April — Start of Tax Year

  • Review your rental income and expenditure records for the previous tax year
  • Confirm all allowable expenses are recorded and receipted
  • Review your mortgage interest position under Section 24
  • Consider whether your portfolio structure (personal vs limited company) remains optimal
  • Set up your Making Tax Digital records for the new tax year if required
2

July — Mid-Year Review

  • Review your rental income and expenditure year to date
  • Make any required payments on account to HMRC
  • Review your capital gains position if you are considering a disposal
  • Review your insurance and ensure cover is adequate
3

January — Self-Assessment Deadline

  • Complete and submit your self-assessment tax return by 31 January
  • Pay any tax due by 31 January
  • Review your records for the current tax year
  • Consider whether to make voluntary payments on account
  • Take advice from your accountant on any significant changes planned for the next year

Specialist handbooks included inside

Your membership gives you access to these supporting handbooks — linked from within this guide.

Who this handbook is for

This handbook is for private landlords in England who want to understand their tax and financial obligations.

  • Self-managing landlords

    Who want to understand their tax obligations and manage their finances effectively without relying entirely on an accountant.

  • Portfolio landlords

    Who want to review their portfolio structure and understand the tax implications of different ownership models.

  • Landlords considering incorporation

    Who are considering moving their portfolio into a limited company and want to understand the tax and legal implications.

  • New landlords

    Who are starting out and want to understand their tax obligations from the beginning.

Not for

Landlords in Wales, Scotland or Northern Ireland — tax legislation may differ. This handbook does not constitute tax advice — always take advice from a qualified tax adviser for your specific circumstances.

Disclaimer

Guidance only. Landlord Handbook provides practical information to help landlords understand their responsibilities. It is not legal or financial advice. Always check the latest GOV.UK guidance and seek professional advice where appropriate.

Included in membership

Frequently Asked Questions

Common questions about this handbook topic.

Finance, Tax & Legal Handbook

Understand your tax — and reduce your bill legally.

13 chapters, 5 downloads, plain English. The complete landlord guide to finance, tax and legal matters.

Instant access · England only · Updated when legislation changes