Understanding Tax as a Landlord

Lucy Orrow, a Senior Tax Manager at Lambert Chapman LLP, has created a Landlord Tax Guide to help provide further understanding of tax as a landlord.

Established in 1970, Lambert Chapman LLP provide a full menu of services to help their clients fulfil their aspirations, offering a one-stop-shop for all their accountancy, audit and taxation needs. They bring a wealth of accountancy experience combined with forward-thinking and innovative solutions to meet the evolving needs of their clients.

landlord tax

Lucy Orrow, a Senior Tax Manager at Lambert Chapman LLP, works alongside PLG to facilitate introductions to their international network, as property ownership becomes more global.

With over 25 years’ experience behind her, Lucy specialises in Personal Tax, Capital Gains Tax, Inheritance Tax, Trust accounts and taxes, International Tax for individuals and employees, alongside international payroll and benefit queries. Lucy also supports the Lambert Chapman LLP personal tax compliance team with the annual tax compliance and P11D processes.

landlord tax

Landlord Tax Guide

Capital Gains Tax (CGT)

One of Lucy’s areas of expertise is Capital Gains Tax (CGT). As there have been many tweaks to the rules in relation to the sale of residential properties over the last few years, she has been kept busy.

Most of us will understand that the disposal of our main residence, the place where we live, is not liable to CGT on sale. This is because of Principal Private Residence relief (PPR).

However, what happens if you haven’t lived in the property throughout ownership?

PPR can be available where you had a period of absence or where the property was sold within the final 9 months of ownership. Otherwise, you may have a gain arising, which could be taxable. If you own a second home or rental property, then there is the potential for a taxable gain to arise.

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Online Reporting

Since 6 April 2020, any taxable gain arising on the sale of a residential property must be reported to HMRC using an online report. This report has to be made within 60 days of the date of completion and any tax paid at the same time.

Lambert Chapman LLP have a streamlined process to assist with making these reports, to help with another step, in what has probably already been a stressful process.


Moving away from CGT, property owners have always reported rental income on their Self-Assessment Tax Returns.

From April 2024, this will change for many landlords.

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Making Tax Digital

If your income (not profit) is £10,000 from rental properties and self-employment, combined, then you will be required to register for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). This will mean that you have to report your income and expenses to HMRC on a quarterly basis plus a year-end report.

At Lambert Chapman LLP they are setting up processes to assist clients with this new form of reporting, which is the biggest upheaval since the introduction of Self-Assessment in 1996. As we get closer to the start date, more guidance and software will be made available, but this is a big push toward the digitalisation of records and reporting.

If you would like to find out further information about the change or any other tax matters visit Lambert Chapman LLP or call 01376 326266.