Section 24 wiped out your mortgage interest deduction. CGT on residential property now has to be reported within 60 days of completion. SDLT surcharges add 3% on top of every buy-to-let purchase. And your accountant's advice? "Maybe look into a limited company." That's not a strategy. That's a Google search.

Property taxation is specialist territory. The rules change constantly and the stakes are high -- one missed CGT deadline, one poorly structured SPV, one incorrect SDLT return and you're facing penalties that wipe out months of rental profit. We work exclusively with landlords, HMO owners, property developers and portfolio investors across Worcester, Birmingham and the West Midlands. This is all we do. And we're very good at it.

Landlord Accounting and Rental Income Tax

Every pound of rental income must be reported to HMRC through Self Assessment. But here's what most landlords miss: the allowable expenses list is longer than you think. Repairs, insurance, letting agent fees, ground rent, service charges, travel to properties, even the cost of replacing white goods. Claim everything you're entitled to and your tax bill drops significantly.

Our landlord accounting services cover the full picture:

Accurate rental income reporting on Self Assessment returns
Allowable expense claims (repairs, maintenance, letting agent fees, insurance, travel)
Capital allowances on fixtures and fittings in furnished properties
Rental loss relief planning and carry-forward
Property income splitting with spouses and business partners
VAT planning for landlords with commercial property portfolios

Whether you rent out a single buy-to-let property in Worcester or manage a diverse portfolio across Birmingham and the West Midlands, we ensure your rental income is reported correctly and your tax liability minimised.

Review My Property Tax

Section 24 Mortgage Interest Restrictions

Section 24 of the Finance (No. 2) Act 2015 is the single biggest tax change to hit landlords in a generation. Since April 2020, individual landlords get zero deduction for mortgage interest. Instead, you receive a basic rate tax credit at 20%. If you're a higher-rate taxpayer paying 40% on rental income but only getting 20% relief on your mortgage costs, the maths is brutal. Some landlords are now paying more in tax than they earn in profit.

We don't just explain the problem. We fix it:

Impact assessments showing how Section 24 affects your personal tax position
SPV structure planning for new acquisitions and refinancing existing portfolios
Property transfer strategies (incorporation relief, holdover relief)
Comparison of personal ownership vs limited company structures
Multi-year projections to quantify long-term savings
Capital Gains Tax planning for property transfers

For higher and additional-rate taxpayers in Worcester and Birmingham, restructuring into a limited company SPV can save thousands per year. But it's not right for everyone -- SDLT on the transfer, CGT on disposal, higher mortgage rates and double taxation on extraction all need modelling. We run the numbers properly before you commit to anything.

Capital Gains Tax on Property Disposals

Sold a rental property? You have 60 days from completion to report and pay CGT to HMRC. Not 60 working days. 60 calendar days. Miss it and you're looking at automatic penalties plus interest on the unpaid tax. Residential CGT rates sit at 18% (basic rate) and 24% (higher rate) -- but with the right planning, legitimate reliefs can reduce the bill substantially.

Our property CGT services include:

CGT calculations on property sales, factoring in acquisition costs, improvement expenditure and disposal costs
Principal Private Residence relief planning (for properties that were once your main home)
Lettings relief and final period exemptions
CGT reporting within 60 days of completion (since April 2020, residential property CGT must be reported and paid within 60 days)
Holdover relief and gift relief for family property transfers
Offsetting losses from other property sales
Timing strategies to span tax years and utilise annual exemptions

Missing the 60-day reporting deadline for property CGT results in automatic penalties. Our team ensures your property disposals are reported on time and your CGT liability is minimised through legitimate planning strategies.

Stamp Duty Land Tax (SDLT) Planning

Buying another property? The 3% SDLT surcharge hits every landlord acquiring additional residential property. On a £300,000 purchase, that's an extra £9,000 on top of standard rates. And with SDLT returns due within 14 days of completion, there's no time for mistakes. We advise before you exchange, not after.

Our SDLT planning covers:

Multiple dwellings relief (MDR) for portfolios purchased in single transactions
First-time buyer relief eligibility
Main residence replacement exemptions from the 3% surcharge
Commercial vs residential property classification
Mixed-use property relief planning
Corporate acquisitions and SDLT structuring

With SDLT returns due within 14 days of completion, accurate and timely filing is critical. Our property accountants in Worcester and Birmingham ensure your SDLT filings are compliant and structured to minimise the tax burden.

SPV Structures (Special Purpose Vehicles) for Property

Post-Section 24, the SPV has become the go-to structure for serious property investors. A limited company set up with SIC code 68209 (letting and operating of own or leased real estate) gives you full mortgage interest deductibility, corporation tax rates instead of income tax, and retained profits that compound without personal tax charges. But it's not a magic bullet. Here's what you need to weigh up:

SPV Advantages

Full mortgage interest deductibility: Limited companies escape Section 24 restrictions and deduct all mortgage interest from rental income
Lower corporation tax rates: 19-25% corporation tax vs up to 45% income tax for higher-rate taxpayers
Profit retention: Reinvest profits within the company without personal tax charges
Succession planning: Shares can be gifted to family members using Business Property Relief and Holdover Relief
Limited liability protection: Personal assets are protected from business liabilities

SPV Considerations

Higher mortgage rates for limited company borrowing
Capital Gains Tax when transferring existing properties into the company
Corporation tax on profits and dividend tax when extracting income
Additional compliance requirements (Companies House filings, corporation tax returns, director's accounts)

We build detailed financial models comparing personal ownership against SPV structures -- factoring in corporation tax, dividend tax, SDLT on transfer, CGT triggers, mortgage rate differentials and extraction costs over 5, 10 and 20 years. No guesswork. Just numbers that tell you exactly which structure puts more money in your pocket.

Plan My Property Tax

Property Developer Accounting

Development and investment are taxed completely differently. Get the classification wrong and HMRC will reclassify your "capital gain" as trading income -- taxed at up to 45% instead of 24%. Whether you're building new homes, converting commercial units or flipping renovations, the accounting and tax treatment must be right from day one.

Our property developer accounting services include:

Trading vs investment classification: Determining whether your property activity is a trade (subject to income tax) or investment (subject to CGT)
CIS compliance: Managing Construction Industry Scheme (CIS) deductions for subcontractor payments
Development appraisal and feasibility modelling: Financial projections for development projects
VAT planning: Zero-rating for new builds, VAT recovery strategies, DIY housebuilder schemes
Work-in-progress accounting: Recognising costs and profits correctly during development cycles
Cashflow forecasting: Managing development finance, contractor payments and sales proceeds

Property development is capital-intensive and high-risk. Our specialist accountants in Worcester and Birmingham help developers maintain accurate financial records, manage CIS compliance and optimise tax structures. For more on CIS compliance for construction businesses, see our dedicated CIS accounting page.

Portfolio Management for Multi-Property Landlords

Once you're past three or four properties, spreadsheets stop working. You need property-by-property P&L tracking, void period monitoring, expense categorisation that survives an HMRC enquiry, and a tax strategy that accounts for the interaction between rental income, CGT exposure and extraction planning. That's what we build.

Our portfolio management services include:

Multi-property accounting systems with property-by-property profitability tracking
Cashflow management and forecasting across the portfolio
Quarterly VAT returns for commercial landlords
Annual tax planning meetings to optimise your property tax position
Disposal and acquisition planning to balance CGT and income tax liabilities
Profit extraction strategies (dividends vs salary for SPV directors)

For landlords managing 5+ properties in Worcester, Birmingham or across the West Midlands, professional portfolio accounting becomes essential. We provide the financial clarity and strategic advice needed to grow and protect your property wealth.

HMO and Furnished Holiday Let Tax Rules

HMOs and Furnished Holiday Lets play by different rules to standard buy-to-lets. Higher yields, but more compliance complexity. Different allowable expenses. Different capital allowances treatment. FHLs even qualify as "relevant earnings" for pension contributions. If your accountant treats them the same as a vanilla BTL, you're leaving money on the table.

HMO Accounting

HMOs typically generate higher rental yields but come with additional regulatory and accounting complexity:

Room-by-room income tracking and tenant turnover accounting
Higher allowable expense claims (furnishings, utilities, cleaning, HMO licensing fees)
Capital allowances on fixtures, furniture and appliances in communal areas
Business rates vs council tax considerations
VAT planning for landlords operating HMOs as furnished accommodation businesses

Furnished Holiday Let (FHL) Rules

Furnished holiday lets qualifying under FHL rules benefit from several tax advantages:

Capital allowances on furniture, fixtures and equipment (rather than replacement relief)
Business Property Relief for inheritance tax (potential 100% IHT exemption)
CGT reliefs including Business Asset Disposal Relief (10% CGT on qualifying disposals)
Pension contribution eligibility (FHL income counts as relevant earnings)

To qualify as an FHL, the property must be available for letting at least 210 days per year and actually let for at least 105 days. We help FHL owners track occupancy, maintain compliance records and maximise the tax benefits of FHL status.

Inheritance Tax Planning for Property

You've spent years building a property portfolio. Without IHT planning, HMRC could take 40% of it when you die. The nil-rate band is £325,000. The residence nil-rate band adds £175,000 -- but only for your main home passed to direct descendants, not your rental portfolio. For landlords with significant property wealth, proactive planning is essential.

Our property IHT planning services include:

Business Property Relief (BPR): Qualifying furnished holiday lets and property development businesses may attract 50-100% IHT relief
Lifetime gifting strategies: Using the £3,000 annual exemption and potentially exempt transfers (PETs)
Trust structures: Placing property into discretionary or interest in possession trusts
Spousal transfers: Using spouse exemptions to maximise nil-rate bands
Residence Nil Rate Band: Additional £175,000 exemption when passing property to direct descendants
Equity release and gifting: Reducing estate value while retaining income

Inheritance tax planning is a long-term strategy. The earlier you start, the more options you have to protect your property wealth for the next generation.

Who We Help

Our specialist property accounting services are designed for:

Buy-to-let landlords

Single property investors and portfolio landlords managing residential rental properties

HMO owners

Landlords operating houses in multiple occupation in Worcester, Birmingham and across the West Midlands

Furnished holiday let owners

Coastal and rural property investors benefiting from FHL tax reliefs

Property developers

Developers building new homes, renovating properties or converting commercial buildings

Commercial property investors

Landlords renting office, retail or industrial premises

Portfolio landlords

Investors managing 5+ properties requiring structured portfolio accounting

SPV directors

Landlords operating property businesses through limited company structures

Why Specialist Property Accounting Matters

We've seen the damage generalist accountants do. Landlords paying thousands more than necessary because nobody modelled a Section 24 impact assessment. CGT returns filed late because the accountant didn't know about the 60-day rule. Properties held personally when an SPV would save £10,000+ per year. Property tax is specialist territory.

Working with a property-specialist accountant delivers:

Tax savings

Legitimate strategies to reduce income tax, CGT, SDLT and IHT

Compliance confidence

Avoiding penalties for late filing, incorrect returns or missed deadlines

Strategic advice

Informed decisions on acquisitions, disposals, refinancing and restructuring

Time savings

Outsourcing complex property accounting to experts

Cashflow clarity

Understanding profitability across your portfolio and planning for tax liabilities

Long-term planning

Inheritance tax, succession planning and wealth protection strategies

Property and landlord accounting is a core specialism at Severn Accounting. Not a bolt-on. Not an afterthought. Our team works with landlords, developers and property investors across Worcester, Birmingham and the West Midlands -- providing the kind of proactive, strategic advice that pays for itself many times over.

Your Property Portfolio Deserves a Specialist

First buy-to-let or fifty-property portfolio -- it doesn't matter. If you're paying more tax than you should, structuring properties in the wrong vehicle, or missing deadlines you didn't know existed, we need to talk. Free initial consultation. No obligation. Just clear, honest advice from accountants who understand property inside out.

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We also offer support with tax preparation and Self Assessment and business consulting for growing property portfolios.

Our offices in Worcester and Birmingham are ready to serve landlords and property developers across the West Midlands.

Landlord Tax & Property Accountant in Worcester