Landlord accounting in Kent: the tax rules every property owner should know

Whether you let a flat in Dartford, a house in Sevenoaks or a portfolio across Kent, the tax side of being a landlord has grown steadily more complex over the past decade. Most landlords we meet are paying more tax than they need to — simply because no one has reviewed their position recently.

Here are the rules that matter most, in plain English.

Mortgage interest relief (Section 24)

Since April 2020, finance costs on residential lets no longer reduce your taxable profit. Instead you receive a 20% tax credit. For higher-rate taxpayers, this effectively means paying 40% tax on rental income while only getting 20% back on the mortgage — the single biggest squeeze on landlord profits. The ownership structure you choose (personal, joint, or company) can materially change this, and it is worth reviewing before your next purchase.

Making Tax Digital reaches landlords in April 2026

Property income counts separately from self-employment income for the threshold — but they are combined once MTD applies. Kent landlords with a rental and a small trade are often caught sooner than they expect.

• From 6 April 2026 — landlords with property income over £50,000 must join MTD
• From 6 April 2027 — the threshold falls to £30,000
• Quarterly digital updates replace the single annual return

Allowances and claims most landlords miss

• £1,000 property allowance — an alternative to claiming actual expenses for very small lets
• Replacement of domestic items relief — replacing furniture and appliances in residential lets
• Allowable expenses — repairs, insurance, agent fees, travel, accountancy
• Capital allowances — available on furnished holiday lets and commercial property, not standard residential lets

Selling? Capital Gains Tax on property

Residential property gains are taxed at 18% (basic rate) and 24% (higher rate), and a return must be filed within 60 days of completion for UK residents. Private Residence Relief, lettings relief and your annual exempt amount can all reduce the bill — but only if they are claimed correctly and on time.

How we help Kent landlords

We act for landlords across Dartford, Kent and the South East: annual Self Assessment (and MTD setup before it becomes mandatory), ownership-structure reviews, expense and relief maximisation, and CGT planning before a sale. Fixed fees, plain English, and a free initial review of your position.

Sources and further reading

• GOV.UK — Tax when you rent out a property
• GOV.UK — Changes to tax relief for residential landlords (Section 24)
• GOV.UK — Capital Gains Tax rates and 60-day reporting