Property accountants in London help landlords, SPV owners and serviced accommodation operators stay tax efficient and HMRC compliant. They prepare rental accounts, report capital gains, handle finance cost relief under Section 24 and advise on whether a limited company makes sense. GM Professional Accountants offers fixed fee property accounting across every London borough, backed by 150+ five-star reviews.
GM Professional Accountants is a London based firm of property accountants, advising landlords, SPV directors and serviced accommodation operators since 2012. The firm is regulated by AAT and helps clients reduce tax legally while staying fully compliant with HMRC and Companies House.
If you own buy-to-let property in the capital, the right adviser can save you thousands every year. The 2026/27 tax year has already brought Making Tax Digital for Income Tax into force for many landlords, and separate, higher property income tax rates arrive in April 2027. This guide explains how property accountants in London work, what they cost, and how GM Professional Accountants supports landlords through both changes.
What Are Property Accountants in London?
Property accountants are specialist tax advisers who focus on rental income, property businesses and capital gains. In plain English, they make sure landlords keep more of their rent and pay HMRC the correct amount, no more and no less. They differ from general accountants because they understand letting agent statements, lender paperwork and the HMRC rules that apply only to property.
Technically, a property accountant prepares rental accounts on the cash basis or accruals basis, files Self Assessment returns, submits Making Tax Digital quarterly updates, manages SPV company accounts at Companies House, and advises on Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT).
How Do Property Accountants in London Work?
Most landlords follow a similar journey when they engage a property accountant. The process is structured, transparent and built around HMRC deadlines.
1 | Free initial review The accountant looks at your portfolio, ownership structure and last filed return, and flags obvious tax savings before you commit to any fee. |
2 | Document gathering and MTD setup You share tenancy agreements, mortgage statements, agent invoices and repair receipts. If Making Tax Digital applies to you, your records move into HMRC recognised software such as Xero or FreeAgent. |
3 | Income and expense reconciliation Every rental payment is matched to a property and tenant. Allowable expenses are separated from capital costs to avoid HMRC disputes. |
4 | Tax planning Your adviser models personal versus property limited company ownership, the Section 24 impact and the effect of the April 2027 property income rates. This is where real savings appear. |
5 | Return preparation and filing The accountant prepares your Self Assessment or SPV company accounts, gets your sign off and files with HMRC and Companies House before the deadline. |
6 | Year round support Throughout the year you receive quarterly MTD reminders, deadline alerts and answers to questions like CGT on a sale or remortgage planning. No surprise bills. |
What Do Property Accountants Cost, and What Tax Applies in 2026/27?
Property accountant fees in London vary with portfolio size and structure. As a benchmark, a single buy-to-let landlord typically pays between £200 and £450 per year. SPV limited companies usually start around £600 plus VAT for full annual accounts and Corporation Tax.
| Service | Typical London Fee | Best For |
|---|---|---|
| Self Assessment for one BTL | £200 to £350 | Single landlord |
| Portfolio Self Assessment (5+ units) | £500 to £900 | Multi property landlord |
| SPV company accounts and CT600 | £600 to £1,200 | Property limited company |
| Serviced accommodation accounts and VAT | £900 to £1,800 | Short let operators |
For 2026/27, personal landlords still face Section 24 in full, so mortgage interest is relieved only as a 20 percent tax credit. Corporation Tax is 19 percent for SPVs with profits up to £50,000 and 25 percent above £250,000, with marginal relief in between. CGT on residential property is 18 percent for basic rate taxpayers and 24 percent for higher rate taxpayers. SPV directors should also note that dividend tax rose from April 2026 to 10.75 percent at the ordinary rate and 35.75 percent at the upper rate.
What changes for landlords from April 2027?
From 6 April 2027, rental profits of personal landlords in England, Wales and Northern Ireland will be taxed at separate property income rates, two percentage points above the current rates. The finance cost tax credit rises to 22 percent, and your personal allowance will be set against employment, trading and pension income before property income. Company owned property is not affected, which is why many London landlords are revisiting their structure now.
| Rental profit band | 2026/27 | From 6 April 2027 |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
| Finance cost tax credit | 20% | 22% |
Does Making Tax Digital apply to me yet?
Making Tax Digital for Income Tax has been live since 6 April 2026 for landlords and sole traders whose combined gross property and self-employment income is over £50,000. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. If you are in, you must keep digital records and send quarterly updates, due on 7 August, 7 November, 7 February and 7 May. A property accountant can take the quarterly work off your hands entirely.
Are you developing as well as letting? Our specialist Property Developer Accountants page covers limited company tax planning, VAT on construction and CIS for developers building to sell or hold.
Case Study: A London Buy-to-Let Portfolio
Problem
A Hackney based limited company director owned three personally held flats in East London. Because Section 24 taxes rent before mortgage interest, her taxable income moved deeper into the higher rate band and her tax bill jumped by £6,800 in one year.
Action
GM Professional Accountants reviewed the portfolio and modelled a transfer into an SPV, testing whether incorporation relief would be available and costing the SDLT on transfer. The team also identified missed allowable expenses, including Replacement of Domestic Items Relief and finance costs from a portfolio remortgage. See our full Property Investment and Landlord service for more on how we approach SPV structuring.
Result
The client saved £4,200 in the first year through correct expense claims alone. The SPV model projects a saving of over £18,000 across five years on profits retained in the company, taxed at Corporation Tax rates rather than 40 percent personally (42 percent from April 2027). Dividend tax on any profits she draws out was built into the model before she made a decision.
What Mistakes Do London Landlords Commonly Make?
A specialist landlord tax return adviser spots these errors before they become HMRC enquiries. The most costly mistakes we see from London landlords include:
| Treating capital improvements as repairs. A new kitchen that upgrades the property is capital, not an allowable expense against rent. The cost is instead added to your base cost when you sell. |
| Missing the 60 day CGT window. You must report and pay CGT on a UK residential property sale within 60 days of completion. Late reporting triggers automatic penalties and interest. |
| Ignoring Section 24 and the 2027 rate rise. Many landlords still assume mortgage interest is fully deductible. It is not, and the higher property rates from April 2027 make the gap wider. |
| Assuming Making Tax Digital does not apply. The £50,000 test uses gross income from property and self-employment combined, not profit. Many landlords with modest profits are already in. |
| Mixing SPV income with personal bank accounts. It blurs the line between you and the company, creates director’s loan account problems and makes the bookkeeping messy. Open a dedicated SPV account from day one. |
| Forgetting non resident landlord rules. If you live abroad, your letting agent or tenant must withhold basic rate tax unless HMRC approves your NRL1 application. |
| Missing Replacement of Domestic Items Relief. Replacing furniture, white goods or carpets on a like for like basis is claimable, but it is often overlooked, especially in the first few years of letting. |
| Losing track of SDLT paid on purchase. SDLT, including the higher rates surcharge, forms part of your acquisition cost and reduces the gain when you sell. Keep the completion statement for every property. |
Checklist: Before Your Property Accountant Review
| ✔ | Gather mortgage interest statements for every property |
| ✔ | Collect tenancy agreements and rent statements from agents |
| ✔ | List all repair, maintenance and replacement invoices |
| ✔ | Note service charges, ground rent and insurance premiums |
| ✔ | Record void periods and bad debts |
| ✔ | Confirm the ownership split for jointly held properties |
| ✔ | Find the completion statement and SDLT paid on each purchase |
| ✔ | Check whether your gross income puts you inside Making Tax Digital |
| ✔ | Review your Section 24 position against the April 2027 property rates |
| ✔ | Decide whether SPV incorporation suits your portfolio |
| ✔ | Diarise the 60 day CGT reporting deadline for any sale |
| ✔ | Book a free review with a London property accountant |
Frequently Asked Questions
How much does a property accountant cost in London?
Most London landlords pay between £200 and £900 per year depending on portfolio size. SPV limited companies usually pay £600 plus for full accounts. Fixed fees are standard at GM Professional Accountants.
Do I need an accountant for one buy-to-let in London?
It is not a legal requirement, but a specialist often saves more than their fee in the first year through correct expense and finance cost treatment, and helps you avoid HMRC penalties.
Should I move my London property into a limited company?
It depends on your tax band, mortgage costs and long term plans. Transferring usually triggers CGT and SDLT, although incorporation relief may apply if your letting activity meets HMRC’s business tests. Our Property Investment and Landlord service includes an incorporation analysis.
What is Section 24 and how does it affect London landlords?
Section 24 restricts mortgage interest relief for personal landlords to a basic rate tax credit, currently 20 percent and rising to 22 percent from April 2027. Because rent is taxed before finance costs, it pushes many London landlords into higher tax bands.
What are the new property income tax rates from April 2027?
From 6 April 2027, personal landlords in England, Wales and Northern Ireland pay 22, 42 and 47 percent on rental profits in the basic, higher and additional rate bands. Property held in a limited company pays Corporation Tax instead and is not affected.
Can a property accountant help with serviced accommodation?
Yes. The Furnished Holiday Lettings regime was abolished from April 2025, so short lets are now taxed like other rental income, while VAT can still apply to serviced accommodation. A specialist accountant makes sure you apply the current rules.
Has Making Tax Digital started for landlords?
Yes. MTD for Income Tax started on 6 April 2026 for landlords and sole traders with combined gross income above £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028, with quarterly digital updates required.
How do I report Capital Gains Tax on a London property sale?
You must report the sale and pay the tax within 60 days of completion. Private Residence Relief may reduce the bill if you once lived in the property, while Letting Relief now only applies where you shared the home with your tenant.
Are GM Professional Accountants experienced with SPV property companies?
Yes. GM Professional Accountants specialise in SPV setup, accounts, Corporation Tax and director Self Assessment. The team supports landlords across all London boroughs with fixed fee packages.
Key Takeaways
| A property accountant in London helps landlords reduce tax legally and stay compliant with HMRC and Companies House. |
| Making Tax Digital is now live for landlords above £50,000, and higher property income rates start in April 2027, so 2026/27 is the year to review your structure. |
| GM Professional Accountants supports personal landlords, SPVs and serviced accommodation operators with fixed fee packages and 150+ five-star reviews. |
GM Professional Accountants is a London based accountancy firm helping SMEs, limited company directors, landlords and self employed professionals across London and Essex since 2012. Trusted by clients with 150+ five-star reviews across multiple directories, the firm specialises in VAT Returns, Company Accounts, Corporation Tax Returns and Self Assessment. Whether you run a limited company, work in healthcare or construction, operate a serviced accommodation business or hold property through an SPV, GM Professional Accountants offer a personal service that delivers.
Ready to cut your London property tax bill?
Speak to a specialist property accountant today. Free initial review available.
Book a Free Review Call 0208 396 6128
Or email info@gmpa.co.uk
Author: Sharaz Zaman, AAT Member | 15+ years advising London landlords and property investors
Published: April 2026
Last reviewed: 23 September 2026 (correct for the 2026/27 tax year, including announced changes from April 2027)
Credentials: GM Professional Accountants is AAT regulated and has been serving London businesses since 2012 with 150+ five-star reviews.
This article is for general guidance only and does not constitute financial or tax advice. Please consult a qualified accountant for advice specific to your circumstances.
