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At P10 Financial, we specialise in providing landlords, developers, and property businesses with clear, strategic advice on managing property tax, from day-to-day rental income to long-term planning around Capital Gains, Inheritance Tax, and incorporation.
Property tax covers the taxes landlords and investors pay on rental income, sales, purchases and estates: Income Tax or Corporation Tax on rental profits, Capital Gains Tax when a property is sold, Stamp Duty Land Tax on purchases and Inheritance Tax on what you leave. Which apply, and at what rates, depends on whether you own property personally or through a company. P10 Financial gives landlord tax advice and property tax planning, modelling both routes side by side and advising on incorporation, SPVs, trusts and portfolio structure.
Property has long been a favoured investment in the UK, but it comes with a complex and often frustrating tax landscape. Whether you’re renting out a single flat or managing a multi-million-pound portfolio, getting your property tax strategy right can make a substantial difference to your profitability, compliance, and long-term financial goals.
At P10 Financial, we specialise in providing landlords, developers, and property businesses with clear, strategic advice on managing property tax, from day-to-day rental income to long-term planning around Capital Gains, Inheritance Tax, and incorporation.
Depending on how your property is owned, personally or through a company, different taxes apply. Here's a breakdown:
Income Tax: Rental profits are taxed at your marginal rate (20%, 40%, or 45%; Scottish taxpayers pay Scottish rates). Since 2020, mortgage interest is no longer fully deductible but replaced by a 20% tax credit. From 6 April 2027, in England, Wales and Northern Ireland, property income will be taxed at separate rates of 22%, 42% and 47%, and the mortgage interest credit will be 22%.
Capital Gains Tax (CGT): When you sell a property that has increased in value, you may pay 18% (basic rate taxpayers) or 24% (higher/additional rate) on the gain.
Stamp Duty Land Tax (SDLT): A 5% surcharge applies on second homes and buy-to-let purchases.
Inheritance Tax (IHT): Property forms part of your estate and may be taxed at 40% if not planned for correctly.
Corporation Tax: Rental profits are taxed at 19% if the company’s profits are £50,000 or less, rising to 25% above £250,000, with marginal relief in between. The limits are shared between associated companies, and a close company letting to connected people, such as family members, pays 25%. Mortgage interest and allowable expenses are fully deductible.
Dividend Tax: If you extract profits, you’ll also pay personal dividend tax (10.75%–39.35% in 2026/27).
Capital Gains: Gains on sales are subject to Corporation Tax at the same rates as profits (19% to 25%).
SDLT: Companies pay the 5% surcharge, and a flat 17% rate can apply to residential purchases over £500,000.
There’s no one-size-fits-all answer. The right approach depends on:
Your income level
Number of properties
Future growth plans
Your exit strategy (sale, refinance, hold)
Succession planning needs
P10 Financial runs side-by-side tax modelling to compare personal vs. corporate ownership, helping you make the right decision based on real numbers and real goals.
Absolutely, with the right planning. Common tax-saving strategies include:
Capital Allowances: Claim on commercial property purchases and refurbishments.
Income Splitting: Distribute rental income to lower-earning family members or spouses.
Business Property Relief (BPR): Not usually available for letting or other property investment businesses, but genuine property development and building businesses can qualify.
Using Trusts: For inheritance tax planning and flexible asset control.
SIPP & SSAS Pension Schemes: Tax-efficient routes for commercial property investment.
Tax Deductibles: Maximise your eligible expenses, especially if operating through a company.
We tailor your tax strategy based on your income, goals, and property mix.
The structure of your portfolio affects everything from financing to tax to exit flexibility. We help clients build and restructure portfolios that are:
Tax-efficient
Lender-friendly
Scalable
Compliant
We advise on:
Incorporation (and whether it’s right for you)
SPVs (Special Purpose Vehicles) for developments or joint ventures
HoldCo-OpCo structures for risk management
Trusts for succession
Mixed portfolios across commercial, residential, and international assets
Our property tax and structuring specialists work across the entire lifecycle of property ownership. We’re here to help you:
Understand your current tax position
Reduce your tax burden, legally and ethically
Incorporate or restructure portfolios
Navigate SDLT, CGT, IHT, and more
Plan your long-term property strategy
Whether you’re a first-time landlord or managing hundreds of units, we’ll give you clear advice, real-world numbers, and a tailored strategy to protect your income and grow your wealth.
You pay tax on rental profits, Stamp Duty Land Tax when you buy, tax on any gain when you sell and possibly Inheritance Tax, with the details depending on whether you own the property personally or through a company. Personally, rental profits are taxed at your marginal Income Tax rate, gains are subject to Capital Gains Tax, buying an additional home carries a Stamp Duty surcharge, and the property forms part of your estate, which may be taxed at 40%. Through a company, rental profits and gains are subject to Corporation Tax, and you pay dividend tax on profits you take out.
Not in full if you own property personally: since 2020, mortgage interest relief has been given as a 20% tax credit instead of a deduction, rising to 22% from 6 April 2027 in England, Wales and Northern Ireland. Companies can deduct mortgage interest and other allowable expenses in full from rental profits.
There is no single right answer: it depends on your income, how many properties you own, your growth plans, your exit strategy (sale, refinance or hold) and your succession plans. P10 Financial models personal and company ownership side by side so you can decide on real numbers.
Planning can often reduce it. Common approaches include claiming capital allowances on commercial property purchases and refurbishments, sharing rental income with a spouse or lower-earning family member, using trusts for inheritance tax planning, using SIPP and SSAS pension schemes for commercial property, and claiming every allowable expense.
The right structure depends on your goals, because it affects financing, tax and how easily you can exit. P10 Financial advises on incorporation and whether it suits you, SPVs for developments or joint ventures, holding and operating company structures to manage risk, trusts for succession, and mixed portfolios of commercial, residential and international property.
