Making Tax Digital – can’t sell, can’t rent, screwed?
3 months ago | 4 comments
Forget the RRA for a moment. Time to get out?
8:03 AM, 19th May 2026, 3 weeks ago
2
Making Tax Digital will affect landlords, especially those who have other self employments and not using an accountant.
Will have to do five self-assessment tax returns a year from this 2026 tax return (2025-26 tax year), depending on income.
The income band drops each year – 2026 return (25-26 tax year) needs +£50k income from self-employment and income from property (and an extra 2% income tax for income from property); 2027 return (26-27 tax year) drops to +£30k, and drops to +£20k for 2028 return (27-28 tax year) >> https://makingtaxdigital.campaign.gov.uk/
If your income generated from just 1 or maybe 2 properties takes you into MTD and the RRA, plus the proposed EPC minimum C, maybe for many more, it could be time to consider whether the PRS is worth staying in.
The CGT allowance has already been reduced to £3k – hardly worth anything anyway – and will Reeves remove the allowance altogether, who knows?
No longer affects me as out, thankfully, after 35 years.
Thanks,
Judith
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Member Since January 2024 - Comments: 378
10:45 AM, 19th May 2026, About 3 weeks ago
All part of reducing bureaucracy:-)
Nothing like a light touch government (and this is nothing like it).
Luckily MTD ITSA is currently easily avoided by setting up a partnership (or, in some cases, a company eg self-employed transferred to company).
Member Since May 2024 - Comments: 135
8:54 PM, 19th May 2026, About 3 weeks ago
For me, there are several factors that have diminished the appeal of property compared to other investments.
1.Interest rates at pre 2009 levels make landlord returns only slightly elevated to bonds.
2.The risk on a default which might have cost around £6k might now be over £20k with the RRA on an average property. A risk higher than many other investments.
3.A combination of sell offs from landlords and homeowners will restrict any capital gain in the medium term.
Although there are many articles about managing a property portfolio the real question is whether we should be moving to greener pastures..