UK Landlord Tax Guide 2026
An overview of the key taxes UK landlords need to understand in 2026, covering Section 24 mortgage interest treatment, Capital Gains Tax, Stamp Duty Land Tax, allowable expenses and the limited company vs personal name decision. Not a substitute for personalised advice from a property-specialist accountant.
Section 24 in 2026
Section 24 restricts mortgage interest relief for individual landlords to a 20% tax credit, rather than allowing interest to be deducted from rental income. Higher-rate taxpayers are typically the worst affected. Limited company SPVs are not subject to Section 24 — full interest deductibility applies.
Other landlord taxes to model
- Stamp Duty Land Tax (SDLT): a 5% surcharge on second homes and buy-to-let purchases. See our SDLT calculator.
- Capital Gains Tax — 18% / 24% rates on residential property disposals in 2026.
- Income tax on rental profits — full standard rates apply.
- Allowable expenses — letting agent fees, insurance, repairs (not improvements), accountancy.
Combining this with the rental yield calculator gives you a complete pre-purchase tax view.