Landlord tax in 2026: Section 24 and beyond

Being a landlord stopped being tax-simple in 2017 and never went back. Three things define the landscape: Section 24 on mortgage interest, the repairs/improvements boundary, and the 60-day capital gains deadline when you sell.

Section 24, without the myths

You can no longer deduct mortgage interest from rental profit. Instead, tax is calculated on profit before interest, then reduced by a credit of 20% of the interest. Basic-rate landlords land roughly where they were; higher-rate landlords pay materially more — and because taxable 'profit' is now bigger on paper, Section 24 alone pushes some landlords into higher rate, or past thresholds like the £100k personal-allowance taper and child benefit clawback.

What you can still claim

The boundary that matters: repairs are deductible now; improvements (extensions, upgrades beyond modern equivalent) are capital and only help when you sell. Misclassifying improvements as repairs is the classic landlord enquiry trigger.

• Repairs and maintenance — fixing, replacing like-for-like, redecorating between tenants
• Agent fees, advertising, insurance, ground rent and service charges
• Utilities and council tax for periods you pay them
• Accountancy, legal fees for lets of a year or less, mileage for property visits
• Replacement of domestic items (like-for-like) in furnished lets

Selling: the 60-day rule

Sell a rental at a gain and a CGT return plus payment is due within 60 days of completion — completely separate from Self Assessment. Residential gains are taxed at 18%/24%. Private residence relief covers years you lived there plus the final nine months, which softens gains on former homes turned rentals.

The limited company question

Companies deduct interest in full and pay corporation tax rates — attractive on paper, especially for higher-rate landlords reinvesting rents. But moving existing properties in means CGT and SDLT on the transfer, and extracting rental profits personally adds a second tax layer. Broad honest pattern: new purchases by portfolio-building higher-rate landlords often suit a company; moving an existing small portfolio rarely pays. We'll run your actual numbers before you decide anything.