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Discover landlord tax changes for 2024/25 and learn how Landlord Studio can streamline accounting to help you stay compliant, maximize deductions, and save time.
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Written by
Ben Luxon
PUBLISHED ON
Oct 16, 2024
Understanding the nuances of landlord tax is essential for UK property investors looking to optimise their rental income and reduce their workload. The tax landscape is constantly changing as rotating government officials bring in new policies. Keeping up with these changes will help you remain compliant, saving major headaches down the road.
This guide will include a review of the different tax rates, reliefs, and major landlord tax changes for the 2024/25 financial year. We'll also take a peek at how Landlord Studio can streamline accounting to help you meet regulations and reduce your workload.
Starting with the basics - you pay landlord tax on any rental income you receive. The amount depends on your earnings and the tax rates that apply to your income level.
These tax brackets in the UK are the same as general income tax brackets. For the 2024/25 tax year there are no changes to the headline tax rates and thresholds of income tax. However, personal tax rates thresholds remain frozen until 2028, which effectively means you’ll pay more tax each year due to ’fiscal drag’.
The main tax bands effective for the 2024/25 tax year are:
Related: A Landlords Guide to Tax on Rental Income
The 2024/25 tax year brings a few buy-to-let tax changes that property investors should be aware of.
Firstly, as of June 1, 2024, Multiple Dwellings Relief, a bulk purchase relief for Stamp Duty Land Tax (SDLT), has been abolished, and it can no longer be claimed for transactions that are completed or substantially performed on or after this date.
Learn more about SDLT and Multiple Dwellings Relief here
Property investors may also be required to pay - Capital Gains Tax (CGT). This generally applies if they sell a property that has increased in value.
CGT reporting requirements have changed slightly. Now you have 60 days to declare any CGT you owe if you sell a rental property during the tax year.
CGT rates for property are higher than for other assets. The 2024/25 CGT rates are:
For the current tax year (2024/25), the CGT allowance is £3,000. These rates can significantly affect your total profit when selling properties, so thorough planning ensures there are no nasty surprises post-sale.
And, the one big tax change being introduced in the near future is Making Tax Digital (MDT). This is a new system of tax collection that the government is introducing in April 2026, which will demand that landlords earning over £50,000 keep digital tax records. Furthermore, landlords will be required to submit quarterly updates to HMRC and a final declaration. Though this change does not directly impact the current 2024/25 tax year, landlords who transition to digital tax management proactively will benefit greatly when this legislation comes into effect.
Landlord Studio's accounting features help property owners record income and expenses; an important tool for investors who own several properties. These features automate large parts of record keeping by utilising bank feeds and receipt scanning technologies. This not only saves precious time but removes the possibility of human error leading to a miscalculation. This, in turn, ensures your compliance with regulations.
Related: 6 Best Free MTD Software For Landlords
Several tax reliefs remain to help reduce your landlord tax bill. These include:
Landlord Studio's customizable financial reports allow you to accurately track deductible expenses. This ensures that no stone goes unturned, and you receive all the reliefs you are entitled to.
The rules on landlord tax are known for catching landlords out. In most of these cases, there is no deliberate deception; some details are simply overlooked. These innocent mistakes can result in large fines and HMRC scrutiny.
Our platform allows you to set up reminders for key tax dates and our default expense categories are in line with HMRC requirements to help you easily and accurately categorise income and expenses. With bank feeds syncing directly to your account, you reduce the risk of missing important deductions or making costly accounting errors.
Though there are no major changes to landlord tax protocols in 2024, the upcoming buy-to-let tax changes in 2026 and the introduction of MTD make now the prime time to prepare yourself for these changes and ensure compliance in the future.
Landlord Studio offers a comprehensive suite of features that help with all aspects of property management accounting, from expense tracking to integration with Xero, ensuring compliance with the new digital tax requirements.
Staying on top of landlord tax changes and reliefs is key to maximising profits and avoiding penalties as a landlord. Although this may seem overwhelming at best and impossible at worst, you can trust Landlord Studio with all of your property management and accounting so your taxes are done right the first time around.
Create your free Landlord Studio account today to discover how it help you streamline your rental management, maximize tax deductions, and increase returns.
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Landlord Studio is an easy to use MTD compliant property management and accounting software designed for UK landlords.
Track income and expenses, run reports,, find and prescreen tenants, manage property maintenance, and more.
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