How recent tax changes affect landlords completing Self Assessment

Written by Josh | Dec 19, 2025 1:08:42 PM

If you let property, recent tax changes could affect how you report and pay tax. Understanding these updates now will help you avoid errors and prepare for what’s coming next.

Capital Gains Tax on residential property

From 6 April 2024, the higher Capital Gains Tax rate on residential property gains fell from 28% to 24%. The basic rate remains at 18%. This change is designed to make property disposals slightly less costly for higher-rate taxpayers.

HMRC also updated the main Capital Gains Tax rates on other assets for disposals made on or after 30 October 2024. If your accounting software has not yet applied these changes, HMRC provides an official calculator to adjust your 2024–25 Self Assessment computations. It’s worth checking this before you submit your return.

Making Tax Digital for Income Tax

Making Tax Digital for Income Tax is approaching and will affect many landlords. It requires quarterly updates and digital record keeping using compatible software.

The rollout is phased:

From April 2026, landlords with combined self-employment and property income over £50,000 must comply.
From April 2027, the threshold lowers to £30,000.
Draft legislation confirms an extension to £20,000 from April 2028.

These thresholds are based on gross income, not profit. If your income is close to these figures, start planning now.

What to do for your next Self Assessment

Begin keeping digital records immediately. This will make the transition to Making Tax Digital smoother and reduce the risk of errors.

If you sold a residential property since April 2024, check the Capital Gains Tax rate applied in your software. Use HMRC’s adjustment tool if needed to ensure accuracy.

Finally, review your income against the upcoming Making Tax Digital thresholds. If you are likely to exceed them, explore compatible software and set a timeline for sign-up. Early preparation will save stress later.

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