Landlords with one or two properties: tax returns, joint ownership and selling

Written for the 2026/27 tax year. Checked against GOV.UK on 6 October 2026.

If you let one or two properties, three things decide your paperwork: whether your rent is high enough to need a Self Assessment tax return, whether you own alone or jointly, and whether you sell. This guide covers each for the 2026/27 tax year, and what an accountant costs. It comes from Wainwrights Accountants in Bromborough, Wirral. We work with landlords across the UK, from £20 a month + VAT (£24 including VAT).

Key figures for small landlords in 2026/27

Do you need a tax return for one rental property?

It depends on the rent, not the number of properties. The first £1,000 of rental income in a tax year is tax-free. You must report it on a Self Assessment tax return if it is more than £2,500 after allowable expenses, or more than £10,000 before them.

Between those figures, GOV.UK says to contact HMRC if your income from property rental is more than £1,000 a year, up to £2,500.

If you do not usually send a tax return, you need to register for Self Assessment by 5 October following the tax year you had rental income. The return and any tax you owe are then due by 31 January. For 2026/27 that is 31 January 2028.

If you have two properties, you do not do two sets of sums. GOV.UK says you work out the profit or loss for all your property lettings as if they were a single business: add the rents together, add the allowable expenses together, and take one from the other.

What can a landlord claim against the rent?

Costs of the day-to-day running of the property. GOV.UK’s list includes letting agents’ fees, accountants’ fees, buildings and contents insurance, maintenance and repairs, utility bills, ground rent and service charges, Council Tax and services such as cleaning or gardening.

Three points to know:

• Repairs, not improvements. Maintenance and repairs are allowable. Capital expenditure, such as buying the property or renovating it beyond repairs for wear and tear, is not.
• Mortgage interest. An individual landlord cannot deduct interest on a residential property loan as an expense. Relief for finance costs is restricted to the basic rate of Income Tax.
• The allowance or your expenses. If you claim the £1,000 property allowance, you cannot also claim a deduction for your expenses.

You may also be able to claim relief for replacing a domestic item, such as a bed, a sofa, carpets or a fridge, in a residential let.

How is jointly owned rental property taxed?

Each owner is taxed on their own share and reports it on their own tax return. Your share of a jointly owned property is not a separate business from any property you own yourself.

Married couples and civil partners. GOV.UK says property jointly owned by married couples and civil partners who live together will usually be taxed in equal shares. If you own it in unequal shares and are entitled to the income in the same unequal shares, it can be taxed on that basis. You both need to declare this to HMRC on Form 17, with evidence that your shares are unequal, such as a declaration or deed.

Other joint owners. Your share of the rental profit or loss will usually be based on the share of the property you own, unless you agree a different allocation.

This is why our price for joint owners includes two Self Assessment tax returns, one for each of you.

What do you file when you sell a rental property?

If you make a taxable gain on a UK residential property, you must report it and pay the Capital Gains Tax within 60 days of completing the sale. GOV.UK says you may have to pay interest and a penalty if you do not report and pay on time. This is separate from your yearly tax return.

For 2026/27 the Capital Gains Tax allowance is £3,000. Above it, gains are taxed at 18% where they fall within the basic rate band and 24% above it. Your gain is usually the difference between what you paid and what you sold for, less costs such as estate agents’ and solicitors’ fees and improvement works.

If the property was jointly owned, each owner works out and reports the gain on their own share. If you are registered for Self Assessment, you also include the sale in your tax return for that year.

GOV.UK says UK residents do not need to report online if their total gains are below the tax-free allowance.

We prepare and file 60-day Capital Gains Tax returns. It is a service we provide and is not part of the monthly price; ask us to add it to your quote.

Does Making Tax Digital apply to a landlord with one or two properties?

Only if your qualifying income is over the threshold. Qualifying income is your rent plus any self-employment income, before expenses. For 2026/27 the test is income over £50,000 in 2024/25. It falls to £30,000 (2025/26 income) from 6 April 2027 and £20,000 (2026/27 income) from 6 April 2028.

For a jointly owned property, only your share of the rent counts. See our guide to Making Tax Digital for landlords, and our guide to what changed for landlords in 2026/27.

Do you need an accountant for one or two properties?

No, the law does not require one. You can send your own tax return. What an accountant does is prepare the property pages and the return from your records, tell you which costs HMRC allows, and keep track of the dates.

At Wainwrights that means a UK property tax return, your Self Assessment tax return and tax efficiency planning, with your own dedicated accountant. We check which reliefs you can claim; we can’t promise what your bill will be until we’ve seen the figures.

What does an accountant cost for one or two properties?

From £20 a month + VAT (£24 including VAT) for a single owner with one property. Each property after the first adds £5 a month + VAT (£6 including VAT), and joint owners start from £25 a month + VAT (£30 including VAT).

• Single owner, one property: from £20 a month + VAT (£24 including VAT)
• Single owner, two properties: from £25 a month + VAT (£30 including VAT)
• Joint owners, one property: from £25 a month + VAT (£30 including VAT)
• Joint owners, two properties: from £30 a month + VAT (£36 including VAT)

Prices are indicative, and our team confirms the scope and your final price. If Making Tax Digital applies to you, compliance support is an add-on at £35 a month + VAT (£42 including VAT), charged for each owner who needs it. There is no minimum term. See our landlord accounts service, Hammock, the landlord software we recommend, and our prices.

What do small landlords ask us?

Do I need to tell HMRC about my rental income?

Yes, if you receive more than £1,000 of rent in a tax year. At or below that, the property allowance normally covers it and there is nothing to report.

I own a property jointly. Whose tax return does it go on?

Both. Each owner reports their own share of the rent and costs on their own return. Our price for joint owners includes two Self Assessment tax returns, one for each of you.

Can I deduct my mortgage interest?

Not from your rental profit on a residential let. For 2026/27 you get a reduction in your tax bill instead, at the 20% basic rate. It can be worked out on less than the full interest, and it cannot create a refund. We work it out in your return.

I’m selling a rental property. Is there anything to file?

Yes, if you make a taxable gain on a UK residential property. You must report it and pay the Capital Gains Tax within 60 days of completion. We prepare and file the return as a service we quote for; ask us to add it to your quote.

When is the tax return deadline for landlords?

31 January. The online return and payment for the 2025/26 tax year are due by 31 January 2027, and for 2026/27 by 31 January 2028.

How much does a landlord accountant cost?

From £20 a month + VAT (£24 including VAT) for a single owner with one property. Joint owners start from £25 a month + VAT (£30 including VAT), and each property after the first adds £5 a month + VAT (£6 including VAT).

How these rules apply depends on your own rent, costs and ownership. To talk yours through with an accountant in Bromborough, get a quote or book a free call.