Free HMRC guidance covering every property tax you face in 2026/27 — from stamp duty to rental income, Section 24 mortgage interest restrictions, Council Tax, and annual charges on corporate-owned homes. Plain English. Official rates. GOV.UK source links throughout.
UK property ownership triggers multiple layers of tax at different stages: when you buy, while you hold and let, and when you sell. This guide maps the full landscape so you know exactly which regime applies to your situation — and where to go next.
Stamp Duty Land Tax (England & NI), Land Transaction Tax (Wales) and Land and Buildings Transaction Tax (Scotland) — three separate regimes with different bands, surcharges and filing deadlines depending on where your property sits.
SDLT from £125k · LTT from £225k · LBTT from £145kEngland & Northern Ireland. Standard rates from 0%–12%, additional 5% surcharge for second homes, 17% flat rate for corporate purchasers above £500k.
Wales only. 0% up to £225,000 — the highest nil-rate threshold in the UK. Administered by the Welsh Revenue Authority, not HMRC.
Scotland only. Nil-rate from £145,000. Additional Dwelling Supplement (ADS) at 8% of the full purchase price — significantly more than England's band-by-band 5% surcharge.
Eight valuation bands based on 1991 property values. Discounts for single occupants (25%), empty properties, and exemptions for students. Premium charges apply to long-term empty homes — up to 100% extra from year two.
Declaring rental income, claiming allowable expenses, the £1,000 property allowance, Rent-a-Room relief up to £7,500, and the Self Assessment deadlines that apply to landlords.
Ask any property tax question and get answers grounded in HMRC's published guidance — instantly. Useful for quick "what-if" scenarios on stamp duty, rental calculations or Section 24 impact.
How the mortgage interest restriction works, who it hits hardest, and what incorporation into a limited company really means for tax — including the SDLT and CGT costs of transfer.
Companies owning UK homes worth over £500,000 face ATED charges from £4,600 to £303,450 per year. Reliefs exist — but you must still file a return even when zero tax is owed.
30 April filing deadline · 2026/27Received a letter about undeclared rental income, a CGT 60-day deadline, or ATED filing? Understand exactly what HMRC is looking for and how to respond correctly.
All figures sourced directly from HMRC's published guidance, Revenue Scotland, and the Welsh Revenue Authority for the 2026/27 tax year.
The property transaction tax you pay depends entirely on where in the UK the property is located — not where you live. Scotland, Wales, and England/Northern Ireland each operate their own separate system with distinct rates, bands, and filing authorities. Getting this wrong is one of the most common compliance errors HMRC sees.
England or Northern Ireland: Pay Stamp Duty Land Tax (SDLT) to HMRC within 14 days of completion.
Scotland: Pay Land and Buildings Transaction Tax (LBTT) to Revenue Scotland within 30 days.
Wales: Pay Land Transaction Tax (LTT) to the Welsh Revenue Authority (WRA) within 30 days.
| Purchase price | SDLT (England/NI) | LBTT (Scotland) | LTT (Wales) |
|---|---|---|---|
| Up to £125,000 / £145,000 / £225,000 | 0% | 0% | 0% |
| Next slice to £250,000 | 2% | 2% | 6% |
| Next slice to £325,000–£400,000 | 5% | 5% | 7.5% |
| Higher bands (to £925k–£750k) | 5%–10% | 10% | 10% |
| Above £1.5m / £750k | 12% | 12% | 12% |
| Additional dwelling surcharge | +5% (each band) | +8% (full price) | Separate higher rate table |
Source: HMRC GOV.UK, Revenue Scotland, GOV.WALES. Each nation has different band thresholds — see the individual guides for complete tables and worked examples.
From 1 April 2025, the temporary SDLT threshold increase (in place since September 2022) expired. The nil-rate threshold reverted from £250,000 back to £125,000. First-time buyer relief reverted from £425,000 to £300,000, with a price cap of £500,000 (down from £625,000). These are the rates that apply throughout 2026/27.
If you'd like to run the numbers on your own transaction, our free property tax calculator lets you instantly check your SDLT, LBTT or LTT liability — no registration needed.
If you receive rental income in the UK, you must declare it to HMRC through Self Assessment — even if you make a loss, and even if tax is owed below the personal allowance. Per HMRC's published property income guidance, rental profit is calculated as total rental receipts minus allowable expenses — not as a flat percentage of income.
Per HMRC's published guidance, individual landlords can deduct the following expenses from rental income before calculating taxable profit:
Per HMRC's published guidance, if your total rental income is £1,000 or less in a tax year, you have nothing to declare and pay nothing. If your income exceeds £1,000, you can choose between claiming actual allowable expenses or simply taking a flat £1,000 deduction (the property allowance) — whichever reduces your tax bill more. See our income from property guide for the full breakdown.
This is the single most impactful tax change for private landlords in a generation. Since 6 April 2020, individual (non-corporate) landlords can no longer deduct mortgage interest directly from rental income. Instead, per HMRC's published guidance, you receive a 20% basic-rate tax credit on your total finance costs — meaning higher-rate taxpayers face a substantial effective tax increase.
Limited companies are not subject to Section 24 — they can still deduct mortgage interest in full as a business expense. This has driven many landlords to consider incorporation, though the process carries its own tax costs. Our Section 24 and property incorporation guide walks through the mechanics in detail.
Wondering how Section 24 affects your specific numbers? Try our property tax calculator, or ask our AI Tax Assistant to model a scenario for you.
If a company, corporate partnership, or collective investment scheme owns a UK residential property valued at more than £500,000, it falls within the Annual Tax on Enveloped Dwellings (ATED) regime. Per HMRC's published ATED guidance on GOV.UK, this applies regardless of whether the company is UK-based or offshore.
| Property value (at 1 April 2022) | Annual ATED charge 2026/27 |
|---|---|
| £500,001 – £1,000,000 | £4,600 |
| £1,000,001 – £2,000,000 | £9,450 |
| £2,000,001 – £5,000,000 | £32,050 |
| £5,000,001 – £10,000,000 | £75,050 |
| £10,000,001 – £20,000,000 | £150,650 |
| Above £20,000,000 | £303,450 |
Source: HMRC GOV.UK — Annual Tax on Enveloped Dwellings: the basics (updated March 2026). Charges indexed to CPI annually.
A company that lets its property commercially at arm's length can usually claim a full ATED relief. But per HMRC's guidance, you must still file a Relief Declaration Return by 30 April each year. Failing to file — even where £0 is owed — triggers automatic late-filing penalties of £100 immediately, rising further with continued delay. This is one of the most commonly missed property tax obligations in the UK.
See the full ATED guide for a complete breakdown of reliefs, the online filing process, and what to do if you've missed a return. If your corporate structure is complex or you've received an ATED compliance letter, our expert matching service can connect you with a specialist who handles this regime daily.
| Purchase price portion | Standard rate | Additional dwelling (+5%) | First-time buyer |
|---|---|---|---|
| Up to £125,000 | 0% | 5% | 0% |
| £125,001 – £250,000 | 2% | 7% | 0% (to £300k) |
| £250,001 – £925,000 | 5% | 10% | 5% (£300k–£500k) |
| £925,001 – £1,500,000 | 10% | 15% | Standard rates apply |
| Above £1,500,000 | 12% | 17% | Standard rates apply |
| Non-UK resident surcharge | +2% on all bands · applies from 1 April 2021 | ||
| Corporate purchaser (£500k+) | 17% flat rate from 31 October 2024 (previously 15%) | ||
First-time buyer relief: 0% on the first £300,000 where total price is £500,000 or below. Above £500,000, standard rates apply to the full amount. Both buyers in a joint purchase must qualify as first-time buyers.
| Purchase price portion | Standard rate | First-time buyer nil-rate band |
|---|---|---|
| Up to £145,000 | 0% | 0% (to £175,000) |
| £145,001 – £250,000 | 2% | 2% |
| £250,001 – £325,000 | 5% | 5% |
| £325,001 – £750,000 | 10% | 10% |
| Above £750,000 | 12% | 12% |
| ADS (additional dwelling supplement) | 8% of the full purchase price — not marginal bands | |
| Purchase price portion | Standard rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
| Higher residential rates | Separate band table from 11 Dec 2024 — starting at 5% on the first £180,000 |
Wales does not offer first-time buyer relief. The high nil-rate threshold of £225,000 provides de facto benefit to many first-time buyers in lower-value Welsh property markets.
Instantly calculate your SDLT, LBTT or LTT on any purchase, check your rental profit after Section 24, or model a CGT disposal. Free, no registration required.
Calculate now →Ask any property tax question in plain English — stamp duty on your purchase price, whether you're caught by ATED, how Section 24 affects your tax bill. Answers grounded in HMRC guidance.
Ask a question →Our guidance is free — but complex situations need a qualified professional. Match with an expert who specialises in your exact property tax regime and can represent you with HMRC.
Find an expert →HMRC's Connect system cross-references data from Tenancy Deposit Schemes, mortgage lenders, the Land Registry, letting platforms like Airbnb, and Companies House. If there's a mismatch between what's been declared and what these sources suggest — you may receive a nudge letter.
A nudge letter is not a formal tax investigation. It is HMRC giving you one final opportunity to self-correct. The worst thing you can do is ignore it, or sign and return a Certificate of Tax Position without fully verifying the figures. Doing so can escalate a routine compliance check into a full statutory tax enquiry with maximum penalties.
Common property-related nudge letter types include undeclared rental income, missed CGT 60-day reporting on property sales, short-term letting income via platforms, and corporate directors with ATED filing obligations. Our dedicated HMRC nudge letters and compliance checks guide covers every scenario in detail — including exactly how to respond to each type.
1. Do not sign and return the Certificate of Tax Position before verifying your records.
2. Calculate your actual position using all allowable expenses and legitimate deductions.
3. If there is an error, use the correct HMRC disclosure route (Let Property Campaign, Digital Disclosure Service, etc.).
4. Consider matching with a property tax expert — they can assess your full exposure and manage the disclosure process. Find an expert here.
Our free guidance covers the rules — but complex portfolios, corporate structures, HMRC disputes, and incorporation decisions need a professional who lives and breathes property tax. Our matching service connects you with exactly the right specialist for your situation.
Find my property tax expert →The most frequently asked questions about UK property and land tax, answered using HMRC's published guidance.
Free HMRC-sourced guidance, a property tax calculator, and an AI assistant — all in one place. For complex situations, match with a specialist who knows your exact regime.
Guidance, not advice. The information on this page is provided as free educational guidance based on HMRC's published rules for the 2026/27 tax year. UK Tax Hero does not provide formal tax or financial advice. Tax rules can change — always verify current rates at GOV.UK before making financial decisions, and consider consulting a qualified tax adviser for your personal situation. Property transactions above £500,000, corporate structures, and HMRC compliance matters should always involve professional guidance.
