Accountants for landlords, from first let to final sale

If you let residential property in your own name, we prepare your rental figures and tax return, claim what the rules allow, and plan ahead for Making Tax Digital, the 2027 rate changes and any sale.

Whether you let one flat or several houses in Liverpool, we can prepare your rental figures each year and work out the tax before you sell.

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What we handle

Rental income and allowable expenses prepared for your Self Assessment return, submitted online by 31 January

A check on whether the £1,000 property allowance or your actual expenses gives the better result

Repairs separated from capital improvements, with replacement of domestic items relief claimed where it applies

Mortgage interest and other finance costs claimed through the basic rate tax reduction that applies to individual landlords

Jointly owned property split correctly, including Form 17 declarations for married couples and civil partners

Making Tax Digital for Income Tax: when it applies to you, then records in Xero and quarterly updates to HMRC

Capital Gains Tax worked out when you sell, with any UK property return and payment made within 60 days of completion

An early view on whether a limited company is worth exploring, with detailed incorporation planning through our property company service

What changes for landlords in 2026/27 and 2027/28

Making Tax Digital for Income Tax has applied since 6 April 2026 to landlords whose qualifying income, meaning property and self-employment income before expenses, was over £50,000 in 2024/25. It extends from 6 April 2027 to those over £30,000 in 2025/26, and from 6 April 2028 to those over £20,000 in 2026/27. Where property is jointly owned, only your share counts. Our Making Tax Digital for landlords page explains the quarterly updates.

From 6 April 2027, under the Finance Act 2026, property income will be taxed at its own rates for landlords in England and Northern Ireland: 22% at the property basic rate, 42% at the property higher rate and 47% at the property additional rate. The tax reduction for mortgage interest and other finance costs will then be worked out at 22% rather than 20%. Rates for Scottish and Welsh taxpayers may differ.

Selling a let property

Gains on a let property are taxed at 18%, 24% or a mix of the two in 2026/27, depending on your taxable income, after the £3,000 tax-free allowance. Relief may apply if the property was once your home. Where Capital Gains Tax is due on UK residential property, it must be reported and paid within 60 days of completion, usually long before your next tax return. If you are not UK resident, every sale or disposal of UK property or land must be reported within 60 days, even when there is no tax to pay.

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Clear, fixed monthly fees, tailored to your needs and agreed in advance. Request a personalised quote and you will know exactly what you are paying, with no surprises.

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Why 3DOM

We can keep your rental records in Xero through the year, so your tax return, any Making Tax Digital updates and our advice on selling or incorporating all start from the same up-to-date figures. As we work digitally, this is the same whether your properties are on the Wirral or further afield.

FAQ

Common questions

Do I have to tell HMRC about my rental income?

The first £1,000 of property income is tax-free under the property allowance. If your rental income is more than £1,000 and up to £2,500 a year, contact HMRC. You must report it on a Self Assessment return if it is more than £2,500 after allowable expenses or more than £10,000 before them. If you do not usually send a return, you need to register by 5 October after the tax year.

Can I still claim my mortgage interest?

Not as an expense if you let residential property in your own name. Instead, you receive a tax reduction worth 20% of your mortgage interest and other finance costs, subject to limits. Under the Finance Act 2026, this reduction will be worked out at 22% from 6 April 2027. Companies paying Corporation Tax can deduct loan interest as an expense, which is one reason some landlords consider a company.

What is the difference between a repair and an improvement?

A repair restores the property to its original condition, such as replacing storm-damaged roof tiles or a broken-down boiler, or redecorating between tenants, and is usually an allowable expense. Adding something that was not there before, such as an extension, is capital spending. It cannot be deducted from your rental profits, but improvement costs may be deducted when you work out your gain on a sale.

We own a rental property as a married couple. How is the income taxed?

Married couples and civil partners who live together are usually taxed on equal shares of income from jointly owned property. If you own it in unequal shares and are entitled to the income in those same shares, you can be taxed on that basis by making a Form 17 declaration, with evidence of your unequal interests. It must reach HMRC within 60 days of the last signature and covers only income from that date onwards.

I let a furnished holiday home. Has the tax changed?

Yes. The furnished holiday lettings rules ended from 6 April 2025 for Income Tax and Capital Gains Tax. Holiday lets are now taxed under the same rules as other residential lettings, so mortgage interest relief is limited to the basic rate tax reduction, capital allowances are no longer available for new spending and the business asset reliefs for gains generally no longer apply. We can review how this affects you.

★★★★★

"We use 3Dom Accountants for all our business accounts. They are efficient and professional , providing our Company with complete peace of mind."

Louise Child · Google review, May 2023

Services

Accountants for landlords, from first let to final sale

What we handle

What changes for landlords in 2026/27 and 2027/28

Selling a let property

Common questions

Related services

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