If you let property, several changes now affect how you report and pay tax. Below is a clear, current view of what has changed and what is coming next.
Capital Gains Tax on residential property
From 6 April 2024, the higher CGT rate on residential property gains fell from 28% to 24%. The basic rate on such gains remains 18%.
HMRC also changed main CGT rates on other assets for disposals on or after 30 October 2024, and provides an official calculator to adjust 2024–25 Self Assessment computations where software has not updated rates.
Making Tax Digital for Income Tax (MTD ITSA)
MTD for Income Tax will require quarterly updates and digital records for many landlords. Phasing is:
From April 2026, for those with combined self‑employment and property income over £50,000.
From April 2027 for over £30,000.
Draft legislation confirms an extension to £20,000 from April 2028.
What to do for your next Self Assessment
Keep digital records now. This will make the MTD transition easier and reduce errors.
If you made a residential property disposal since April 2024, check the rate applied in your software and use HMRC’s CGT adjustment tool if needed.
If your total property and trading income may exceed the MTD thresholds, review your software options and timeline for sign‑up.
Looking for a partner you can trust to manage your accounts?
