What UK Landlords Should Know for the 2025–26 Tax Year

What UK Landlords Should Know for the 2025–26 Tax Year

As the 2025–26 tax year kicks in, FileTax N Go is here to guide landlords through significant changes affecting buy‑to‑let and holiday-let properties:

1. Stamp Duty Land Tax (SDLT) 

• For second homes and buy-to-let: from 1 April 2025, you’ll pay…
•  • 5% on the first £125,000, 7% on the next £125,001–£250,000, 10% up to £925,000, 15% up to £1.5 m, and 17% above
• Fees are also rising in Wales and Scotland, affecting additional properties

2. Renters’ Rights Bill 
Expected in summer 2025, it introduces:

• A ban on ‘no-fault’ Section 21 evictions in the first year,
• Restrictions on rent increases,
• Tenant rights to keep pets,
• Standardised deposit and fee rules

3. Furnished Holiday Lettings (FHL) Changes
From April 2025, the FHL regime is ending:

• You’ll lose benefits like full mortgage interest relief, though landlord losses can now offset other property income

4. Energy Performance Certificate (EPC)
By 2030, rental properties must reach at least EPC C – essential to consider now in your property planning

5. MTD for Income Tax
From 6 April 2026, landlords with >£50,000 income must use digital record-keeping and quarterly reporting.
Thresholds drop to £30k (Apr 2027) and £20k (Apr 2028)

6. Penalties & Tax Brackets

• Income tax and NI thresholds are frozen until 2028, meaning more landlords will enter higher tax bands due to inflation
• Late-filing penalties for MTD users increase from April 2025: late returns = 3–10% charges

How File Tax  N  Go Can Support You

At FileTax nGo, we help landlords confidently navigate these changes:

• Timing and tax strategy
•  We help optimise your purchase schedule to potentially reduce SDLT costs and assess whether incorporation (e.g. limited company) is beneficial for reliefs.
• Compliance with Renters’ Rights
•  We’ll review your tenancy agreements and practices to ensure they meet incoming legal standards before new rules take effect.
• FHL regime transition
•  We assist with updating tax treatment, using loss relief efficiently, and reclassifying properties as needed.
• Energy efficiency planning
•  Our guidance helps you meet EPC ‘C’ targets by 2030, factoring this into renovation and investment planning.
• MTD set-up and ongoing support
•  From software setup and digital bookkeeping, to quarterly updates and final declarations, we’ll manage it all — plus timely reminders and penalty safeguards.
• Penalty prevention and tax planning
•  With thresholds frozen, we’ll proactively plan in-year tax liabilities and ensure timely filing to avoid increased fines.

Ready for the Year Ahead?
We’ll tailor our service to your portfolio — whether you're a small-scale landlord or own multiple properties:

• Comprehensive tax planning
• Digital compliance
• Ongoing financial best advice

Reach out today to discuss how we can proactively protect your investment and maximise returns in 2025–26. Let FileTax N Go manage the complexity — so you can focus on your tenants and your business.