@london.property.broker: Landlords holding property in their own name: your tax bill is going up. From 6 April 2027, property income will be taxed at its own rates, two points higher than other income: → Basic rate: 20% becomes 22% → Higher rate: 40% becomes 42% → Additional rate: 45% becomes 47% The headline rates are only part of the story. The Personal Allowance ordering rules also change. Your allowance will now be set against employment, trading or pension income first, not your rental income. For many landlords with a salary or pension, more of their rental profit will fall into tax. Mortgage interest relief under Section 24 rises from 20% to 22%, but that only partly offsets the increase. What about limited companies? The new rates do not apply. Companies continue to pay corporation tax at 19% to 25%, with full mortgage interest deduction. The caveat is extraction: dividend tax rates already rose from April 2026, to 10.75% and 35.75%. Should you incorporate? Not automatically. Transferring property into a company can trigger Capital Gains Tax, Stamp Duty Land Tax and refinancing costs. For some landlords it makes sense. For others, the cost of moving outweighs the saving. The only way to know is to model your own position properly. The rates apply in England and Northern Ireland. If your property is in Scotland or Wales, check the position separately. In over forty years in property, one thing has never changed: the investors who plan early keep more of their returns. April 2027 is closer than it looks. Do you hold your property personally or through a company? I'd be interested to hear how others are approaching this. This post is for general information only and is not tax advice. Always speak to a qualified accountant before making changes. #Landlords #PropertyInvestment #PropertyTax #BuyToLet #LondonProperty

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Thursday 24 September 2026 09:52:13 GMT