Is Buy to Let Worth It in the UK?

2025 Investment Guide

If you have extra funds and you are looking for some investment you should definitely consider investing in the buy to let property. Buy to let property is the property which is bought with the intention to rent. Buy to let property can be bought on cash and other buy to let mortgages.

Investing in BTL property would mean that you will get the monthly rent from the tenant and you can also make profit from the sale of the property when the property prices increase.

According to Right move, after the lockdown, the demand in the rental property has increased. The demand is 22 percent more at this time than it was last year.

What would be tax implications in buying the property for buy to let? If you are thinking of investing in BTL properties you will be dealing with the following taxes.

Inheritance tax: Tax an individual pays when he dies
Capital gains tax: Tax an individual pays when he sells the property
Stamp Duty and land tax: Tax that is paid when an individual purchases a property
Income tax: Tax an individual pays when he is renting the property.

If we understand the above taxes we can plan ahead and reduce the risks. We at Taxaccolega have an in house property expert team and we can help you advice on the above taxes so you can make a more informed decision.

Some of the challenges that are faced by the BTL landlords:

Mortgage tax Relief: Previously the interest payment on the mortgage could be deducted as an expense from the rental income thereby reducing the taxable income which in turn reduces the income on the rent. However, from April 2020 the mortgage interest cannot be deducted as an expense which can increase the tax paid on the rental income.

Capital Gains Tax: You will have to pay capital gains tax when you decide to sell your Buy to let property, you should always consider this as a cost which will reduce your profits.

We are advising our clients to purchase a Buy to let property through a limited company. If you are holding a property through a limited company you can reduce the tax bills as the companies can deduct the interest on the mortgage as an expense and therefore reduce the tax bills.

If you renting a property through a limited company you will pay the corporation tax on the rental income which you receive, whereas if you are renting a property you will be paying tax on the income tax which is higher than the corporation tax.

However, every situation is different and buying a property is a long term investment, you should be well aware of all the reliefs and options available to you in order to make maximum gain.

If you need a professional advice, please do not hesitate to contact Taxaccolega at 020 8127 0728 and we can do all the calculations for you and help you make a decision based on real numbers.

CTA Box

See How Much You Can Save

CALL NOW

Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs.

Book a free Consultancy [wpforms id="34483"] Related Posts

ID Verification Form For Companies House

From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House.

Companies House will issue a personal code to PSCs.
Taxaccolega (ACSP) can help collect data and assist.
Please answer the questions and upload documents.

Personal Details

Fornames * Last Name * Date of Birth * Nationality * Place of Birth *

Contact Details

Current Address * Date you moved in at current address? * Previous Address(es) in last 12 months (if Any) Email * Phone *

Role in the Company *

I am a Director I am a Person with Significant Control (PSC)

Identity Documents

ID Document * Address Document *
Are you an Overseas Director and PSC? *

Additional (Overseas)

Overseas Supporting Docs *

Privacy & Consent

You are declaring that all documents and information provided by you are true and correct, you are consenting to use and store your personal data and consenting for Taxaccolega Chartered Accountants to act as Authorised Corporate Service Provider (ACSP) on your behalf.

I confirm that I have read and agree to the above Terms & Conditions and consent to the processing of my data by Taxaccolega Chartered Accountants for the purposes of identity verification with Companies House.

Terms & Conditions – Identity Verification Process

By submitting, you authorise Taxaccolega to process your data for ID verification with Companies House.

I agree to Terms*

1. Purpose of this Agreement
1.1 These Terms & Conditions apply to the collection and processing of personal data and identity documents required under the Economic Crime and Corporate Transparency Act 2023 and Companies House identity verification rules effective from 18 November 2025.
1.2 By submitting your details through our online form, you authorise Taxaccolega Chartered Accountants (as an Authorised Corporate Service Provider – ACSP) to process your information for the sole purpose of fulfilling the identity verification obligations set by Companies House.

2. Client Responsibilities
2.1 You confirm that all information and documents you provide are true, accurate, complete, and current.
2.2 You accept full responsibility for any false, misleading, or incomplete information supplied, and acknowledge that this may lead to penalties or rejection of your verification by Companies House.
2.3 You must notify us promptly of any change in your details (such as name, address, or role in the company) which may affect the verification process.

3. Our Role & Limitation
3.1 We act solely as an intermediary in submitting your information to Companies House.
3.2 We do not guarantee the acceptance, speed, or outcome of any identity verification by Companies House. The final decision rests solely with Companies House.
3.3 We shall not be liable for any loss, delay, penalty, or consequence arising from:
* (a) inaccurate or incomplete information provided by you,
* (b) delays or failures within Companies House systems,
* (c) rejection or failure of verification by Companies House, or
* (d) events outside our reasonable control.
3.4 Nothing in these Terms excludes liability for death, personal injury, fraud, or any liability which cannot be excluded under law..

4. Data Protection
4.1 We will process your personal data in accordance with the UK GDPR and the Data Protection Act 2018.
4.2 Your data will be used solely for the purpose of identity verification and related compliance requirements.
4.3 We will retain your information only as long as required by law or regulatory obligations.
4.4 We will not disclose your information to third parties other than Companies House or other parties legally entitled to it.

5. Client Consent
By ticking the consent box and submitting your details, you confirm that:
• You have read, understood, and agreed to these Terms & Conditions.
• You consent to Taxaccolega Chartered Accountants acting as your Authorised Corporate Service Provider (ACSP) for identity verification purposes.
• You consent to the processing, storage, and transfer of your personal data and documents in accordance with Section 4 above..

6. Governing Law & Jurisdiction
These Terms & Conditions are governed by and construed in accordance with the laws of England and Wales, and any disputes shall be subject to the exclusive jurisdiction of the courts of England and Wales.

Checkout

Regular Price: £49.99+VAT £35.00 + VAT

Net Amount: £35.00

VAT @ 20%: £7.00

Total: £42.00

Secure Payment

Full Name Address City Postcode Country Choose Payment Amount Card Details

Is Buy-to-Let Worth It in the UK? 2025 Investment Guide