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Cohort N° IV Landlords
N° IV / VI · Cohort

Landlords

Buy-to-let, HMOs, FHLs — from Bristol student lets to Cotswold holiday cottages.

Section 24 modelling Property incorporation FHL regime changes MTD ITSA readiness
Overview Overview

Landlord taxation has been quietly reshaped over the last decade — Section 24 mortgage interest relief, the FHL regime sunset in April 2025, MTD ITSA from April 2026. We model the impact on your portfolio, advise on the incorporation threshold (the answer is rarely “yes” below four properties, and rarely “no” above ten), and prepare the rental schedules properly.

Working Rhythm

The shape of a
year with us.

Quarterly under MTD ITSA from April 2026 — rental statements per property, reconciled to bank, allowable expenses captured monthly rather than tab-shuffled in February. Annually: portfolio review covering Section 24 impact, the FHL regime sunset (gone April 2025), incorporation maths, and capital gains exposure on any disposal contemplated in the year ahead.

Pitfalls Where it goes wrong

The mistakes a
generalist misses.

Each is something we’ve seen multiple times in inherited engagements — and something we now check for as a matter of course.

  • N° 01

    Mortgage interest treated as a deductible expense — it hasn’t been since 2020, and we still see returns submitted as if Section 24 didn’t happen.

  • N° 02

    FHL claims continued past April 2025 when the regime was abolished — the new rules treat what were FHLs as ordinary residential lets, and the wash-up matters for capital gains.

  • N° 03

    Property incorporation pursued below four units, where the SDLT and CGT cost rarely justifies the corporation-tax saving.

  • N° 04

    Capital gains on a partially-let property without claiming residential-relief properly — a calculation that requires day-counts, not vibes.

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