Landlords have been urged to review their property ownership structures ahead of upcoming taxation changes and new regulatory costs.
Accountancy firm Price Bailey has made the warning that higher-rate taxpayers are set to see higher income tax liabilities on rental profits from April 2027.
At that point income tax increase will increase the basic rate from 20% to 22%, the higher rate from 40% to 42% and the additional rate from 45% to 47%.
While finance cost relief increases from 20% to 22%, this only partially offsets the impact for landlords with mortgage debt, according to Price Bailey.
Additionally, landlords will also be faced with higher regulatory costs after the Renters Rights Act comes into effect in May 2026.
According to Price Bailey, combined with the April 2026 Business Property Relief cap which affects succession planning, this has pushed many landlords to conduct strategic reviews to determine which properties justify continued ownership.
“We're seeing portfolio landlords question more than ever whether individual ownership still makes sense,” said Jon Chambers, tax director at Price Bailey.
“Landlords can navigate this successfully but waiting until April 2027 means missing restructuring opportunities.
“Early action is the best step landlords can make, to strengthen their position going into the next financial year.”
