Landlords: Why a Property Accountant Is Your Best Investment in 2025
With ongoing changes in tax legislation, increasing regulatory pressures, and rising interest rates, 2025 is shaping up to be a challenging year for UK landlords. Whether you own a single buy-to-let or manage a growing property portfolio, having a specialist property accountant is no longer a luxury — it’s a necessity.
At Rothstone Accountants, we’ve seen how tailored accounting advice can save landlords thousands in tax, protect against compliance errors, and support smarter financial decisions.
Here’s why working with a property accountant in 2025 is one of the best investments a landlord can make.
1. Navigate Section 24 and Mortgage Interest Restrictions
One of the biggest tax changes impacting landlords in recent years has been the restriction on mortgage interest relief (Section 24). Landlords can no longer deduct the full cost of mortgage interest from their rental income. Instead, they receive a 20% basic rate tax credit.
For higher-rate taxpayers, this change has significantly increased their effective tax bill. At Rothstone, we helped a client restructure their property ownership into a limited company, reducing their annual tax liability by over £8,700 while remaining compliant.
2. Incorporation and Portfolio Structuring
Is it better to operate as an individual or via a limited company? The answer depends on your long-term goals, income levels, and mortgage access. We perform scenario modelling to help landlords weigh up:
– Tax on profits
– Mortgage interest relief
– Capital Gains Tax liabilities
– Inheritance Tax implications
Incorporating a portfolio requires careful legal and tax planning, but the benefits can be substantial.
3. Making Tax Digital (MTD) for Income Tax
From April 2026, landlords earning over £50,000 annually will be required to follow Making Tax Digital rules. This includes using MTD-compliant software and submitting quarterly updates to HMRC.
Many landlords are still unprepared. We’ve already moved several Rothstone clients onto digital systems like Xero and FreeAgent, ensuring a seamless transition before the deadline hits.
4. Capital Gains Tax and Property Sales
Selling a property? You must report and pay Capital Gains Tax (CGT) within 60 days of completion. We help clients calculate the gain, apply relevant reliefs, and handle the reporting — avoiding last-minute stress and penalties.
5. Expenses and What You Can (Legally) Claim
From letting agent fees and landlord insurance to repairs, ground rent, and travel, there are many legitimate costs that can reduce your tax bill — if you know how to claim them properly. A property accountant ensures you don’t miss out on valuable deductions.
Final Thoughts
Property investment can be a powerful wealth-building strategy, but without expert support, it’s easy to overpay tax or make compliance missteps. At Rothstone, we specialise in working with landlords and property investors, offering proactive advice tailored to your goals.
If you’re a landlord looking to make the most of your investments in 2025, now’s the time to get expert help.
— Rothstone Press
