Over the last couple of years, the Government has made several changes to how income and profits are taxed. Some of these will take effect from the new tax year on 6 April, with higher earners and those letting via a limited company most affected.

Here’s a round-up of what you need to know for this year as a landlord and property investor.

Corporation Tax is rising for companies with profits above £50,000
If you let your properties via a limited company and have annual profits of more than £50,000, you need to be aware that the rates are rising.

Currently, Corporation Tax is 19%, but this is increasing to 25% from April for companies with profits above £250,000. Profits between £50,001 and £250,000 will be taxed at a graduated rate through marginal relief applied to the 25% rate, while companies making up to £50,000 in profit will continue to be taxed at 19%.

It’s worth noting that the Smart Investment service, powered by GetGround, provides landlords with a limited company to purchase a buy-to-let property. As part of this service, we manage all of the admin, including tax-efficient structuring.

Dividend Allowance reducing
If you receive dividend income from shares, you need to know that the tax-free allowance is being cut from £2,000 to £1,000 for the 2023/24 tax year and then to £500 for the 2024/25 tax year.