Landlord tax planning

21st March 2019

The South West is leading the way in seeing rising rent levels for domestic properties. That’s according to the latest HomeLet Rental Index which compared rental prices in February 2019 to those from the previous February. Against an average UK rise of 3.8%, the South West recorded a rise of 7.7% taking average monthly rentals in the region to £868.

Whilst that may be good news for landlords, income is not the only consideration when it comes to owning a rental property. The last few years have seen a number of changes in respect of the rights and responsibilities of landlords as well as the way in which rental properties are taxed. Further changes are also underway including the Tenant Fee Bill which becomes active from 1 June 2019 and pending government legislation announced   in January 2019 which will require a mandatory five yearly electrical safety check for private tenanted properties.

As with any business, landlords have a responsibility to ensure that they keep pace with legislative changes and take action as appropriate. Even if the day-to-day letting arrangements are managed through an agent, landlords still need to be aware of tax changes in particular and how these may affect their personal tax returns.

In recent times it is fair to say that domestic property landlords have been faced with a number of significant tax changes, not least of which is the gradual phasing out of a landlord’s ability to offset mortgage interest payments against receipts. That change affects the current 2018/19 tax year and could have a significant impact on the amount of tax payable, subject to personal circumstances.

As with any other form of tax, being aware of changing tax rules and planning appropriately could make a measurable difference to the final tax bill. For example, the removal of lettings relief with effect from April 2020 could influence the decision on whether it is more tax advantageous to sell a property before that date.

Thompson Jenner Partner Simon Lewis commented “Landlords face a range of accountancy and tax issues which have never been more complex than now to navigate and which may have an impact on tax positions and future decision making.”

Our information fact sheet ‘Rental Properties – Tax Update for Landlords’ summarises some of the key tax changes which are currently concerning landlords. However, this is a summary only and the extent to which an individual landlord will be impacted will depend on their own tax position.  We always recommend that landlords seek professional tax advice that addresses their own particular circumstances.


If you would like to find out more or meet to discuss the tax services which we are able to provide, please contact Simon Lewis or one of our specialist Partners on  01392 258553 or 01395 279521 to arrange a free initial meeting.



Rental properties - Tax update for Landlords

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