Landlord tax changes 2026 27 - the headline moves
- Dividend tax up 2 points - from April 2026: basic rate 10.75%, higher rate 35.75%; the £500 allowance stays tiny
- BADR at 18% - Business Asset Disposal Relief CGT rose from 14% to 18% on 6 April 2026, closing the gap to the 24% main rate
- MTD live - digital quarterly reporting for £50,000+ landlords now; £30,000 wave from April 2027
- FHL regime abolished - holiday lets now file under ordinary property rules; the old capital allowances and relief advantages are gone
- Section 24 fully matured - mortgage interest remains a 20% credit only, which at today’s rates still pushes higher-rate personal landlords toward the company question
Dividend tax increase landlords UK - the company extraction squeeze
The dividend tax increase landlords UK company owners face changes the extraction maths, not the incorporation logic. Profits retained inside the company for reinvestment are untouched - corporation tax applies and the money compounds into the next deposit. Profits extracted as dividends now cost more at every band. The planning response is unglamorous and effective: extract only what you spend, split shareholdings properly between spouses where genuine, use both £500 allowances, and let the company do what companies do best - retain and reinvest. Landlords extracting everything annually are paying the full two-point rise; landlords compounding inside the wrapper barely notice it.
CGT business asset disposal relief 2026 - the exit tax reality
CGT business asset disposal relief 2026 rules matter to landlords with trading businesses attached - developments run as trades, serviced accommodation businesses, and company sales. The relief survived, but at 18% it rewards planning, not procrastination.
Where the 18% rate lands:
- BADR now taxes qualifying business disposals at 18% on the £1m lifetime allowance - up from 14% last year and 10% two years ago
- Pure rental portfolios rarely qualify - BADR needs a trading business, so investment landlords face the 24% residential CGT main rate instead
- Trading exits - development companies, genuine serviced-accommodation trades - still capture the 18% rate with the qualifying conditions met for two years
- The direction of travel is up - every recent Budget has narrowed the gap; exits being “got round to” are exits taxed at tomorrow’s rate
- Deal structure moves the outcome - asset vs share sales, earn-outs, and timing straddle tax years with real money attached
Property income tax planning UK - the moves that still work
Property income tax planning UK for 2026/27 is about placement and timing. Placement: whose name holds the income - spousal transfers and genuine shareholding structures move income to lower bands legitimately; the company wrapper shelters retained profits and full mortgage interest deduction (the complete analysis is in our should landlords incorporate 2026 guide). Timing: capital expenditure into the years it relieves best, disposals planned across tax years to use both parties’ allowances, and refinancing structured so interest sits where it deducts fully - company borrowings via limited company buy to let mortgages deduct in full while personal borrowings credit at 20%. None of this is exotic; all of it is calendar-dependent, and MTD’s quarterly rhythm (see making tax digital for landlords) actually helps by keeping the numbers current enough to plan with.
What is coming next - plan for the 2027 horizon
Two dated certainties frame the next planning year: the MTD threshold falls to £30,000 in April 2027, pulling in most remaining self-managing landlords, and the property and savings income measures announced for 2027/28 point the same direction - property income carrying more, not less, of the burden. The pattern across five Budgets is consistent, and the response is structural rather than reactive: right ownership wrapper, right debt placement, current records, and disposals planned years ahead rather than sold in a scramble. Speak to your accountant on the tax; speak to us on the debt side of every structure decision.
Disclosure: Money Pilot Ltd (FRN: 968705) is an Appointed Representative of Yellow Stone Finance Group Ltd which is authorised and regulated by the Financial Conduct Authority (FRN: 814533). Yellow Stone Finance Group Ltd is a credit broker not a lender. Money Pilot Ltd is Registered in England and Wales No: 13621432. You should always make sure you are able to afford any repayments as late or missed payments can affect your credit rating and access to future finance.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
