Tax property investors

Tax 2022: what property investors need to know

Getting your taxes right is crucial for property investors and landlords. While some may employ an accountant to take care of matters, it’s still important to know the latest rules.

Some of the main taxes most property investors need to be aware of are stamp duty land tax (SDLT), income tax and capital gains tax. Tax can often work slightly differently for property investors compared to homeowners, and the rules can often change.

One major change that has happened recently, which has affected a number of landlords, is Section 24 of the Finance Act 2015. This adjustment means property investors can no longer claim residential mortgage relief when calculating income tax, which you can read more about here.

Lower tolerance from HMRC

Now that the above mentioned Section 24 tax relief legislation has been fully rolled out, HMRC may begin to crack down more on landlords who misreport. This is according to predictions from Tim Walford-Fitzgerland, a partner at accountancy firm HW Fisher.

“HMRC may get more aggressive with landlords who have missed some of the changes in rules in recent years,” he says. “Now that the residential mortgage relief restriction is in full force, we expect less tolerance for misreporting, especially in light of the losses that some landlords may have from recent defaults.”

The way property investors pay capital gains tax has also changed recently. Now, the tax must be paid within 60 days of a property sale. However, again, Walford-Fitzgerald expects that HMRC will have little tolerance towards those who miss their deadlines, so property investors need to be aware of this.

VAT changes for holiday let owners

Last year, the government cut rates for VAT-registered business to 5% for certain supplies, including those linked to holiday accommodation. So property investors who own holiday lets will have been able to take advantage of this.

This was done as a result of the difficulties faced by certain industries, including holiday and hospitality, because of Covid. However, the rate was increased to 12.5% as of 1 October 2021, so property investors with holiday lets will now need to pay the higher rate.

Everyone should brush up on rules – including property investors

After a hugely busy year of property transactions in the UK, the Treasury will be expecting a big tax windfall. Of course, the stamp duty holiday offered during the peak of the pandemic will also have cut the bill for many.

But Walford-Fitzgerald says that with HMRC likely to be stricter where new rules have come in, landlords, developers and home renovators should all know where they stand with tax.

He concludes: “Last year was been one of the busiest for the housing market in more than a decade. According to Zoopla, estimates show that there were 1.5 million sales in 2021, with the total value of homes changing hands at £473bn, some £95bn higher than in 2020.

“As a result, we expect to see HMRC become more proactive on reclaiming owed property tax. As property transactions tend to involve high values, if there is an issue with VAT it usually involves a significant sum. It is therefore very important that landlords, developers and home renovators are up to speed with the latest changes.”

At BuyAssociation, we work with a number of partners who can advise property investors on tax. Get in touch for more information, and browse our list of property investment opportunities currently available.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT