Managing a property portfolio is rewarding—but the financial side can quickly become overwhelming. Between tracking rental income, navigating mortgage interest relief restrictions, calculating capital gains, and filing self-assessment tax returns, it’s easy to make costly mistakes. That’s where a property specialist accountant makes a real difference.
At H2 Accounting, based in London and serving landlords and investors across England, we bring over a decade of accounting expertise—including experience at KPMG—to help you manage your property finances with precision and confidence. Our goal is simple: to handle the numbers so you can focus on what matters most—growing your portfolio and protecting your wealth.
What Does a Property Specialist Accountant Actually Do?
A general accountant handles everyday business finances. A property specialist accountant goes further, with in-depth knowledge of the tax rules, allowances, and structures that apply specifically to property ownership and investment.
At H2 Accounting, our property accounting services cover:
- Self-assessment tax returns for landlords with rental income
- Capital gains tax (CGT) planning when selling investment properties
- Stamp duty land tax (SDLT) advice for purchases and transfers
- Bookkeeping and cash flow management for rental portfolios
- Company structure advice — including whether to hold property in a limited company
- Tax efficiency planning to legally minimise your tax burden
Whether you own one rental property or a growing portfolio of 20+, having the right accountant in your corner can save you thousands every year.
Key Tax Challenges Landlords Face in England
How Has Mortgage Interest Relief Changed for UK Landlords?
Before 2020, landlords could deduct mortgage interest directly from rental income before calculating tax. That’s no longer the case. Since April 2020, the mortgage interest deduction has been fully replaced by a 20% tax credit—a change that significantly affects higher and additional rate taxpayers.
Many landlords were caught off guard by this shift, resulting in unexpectedly high tax bills. A property specialist accountant can model the impact on your specific situation and explore alternative structures—such as holding property through a limited company—that may offer more favourable tax treatment.
What Expenses Can Landlords Claim Against Rental Income?
HMRC allows landlords to deduct a range of allowable expenses from rental income. These include:
- Letting agent fees
- Property maintenance and repairs (not improvements)
- Buildings and contents insurance
- Ground rent and service charges
- Accountancy fees
- Council tax and utility bills (if paid by the landlord)
The distinction between a “repair” (allowable) and an “improvement” (not immediately allowable) is a common area of confusion. Getting this wrong can result in overclaiming or underclaiming—both of which carry risk. H2 Accounting ensures every deduction is correctly categorised and fully evidenced.
Should Landlords Use a Limited Company for Property Investment?
This is one of the most frequently asked questions in property accounting—and the answer is: it depends.
Holding property through a limited company (often called a Special Purpose Vehicle, or SPV) can offer tax advantages, particularly for higher-rate taxpayers. Corporation tax rates are generally lower than personal income tax rates, and profits left within the company are taxed more efficiently. However, there are also downsides: mortgage availability is more limited for limited companies, and extracting profits still triggers personal tax.
The right structure depends on your:
- Current income tax position
- Long-term investment goals
- Number of properties owned
- Plans to pass assets on to family members
H2 Accounting provides clear, honest advice tailored to your circumstances—not a one-size-fits-all answer.
Capital Gains Tax Planning for Property Investors
Selling an investment property triggers a capital gains tax liability. As of 2024, CGT on residential property is charged at 18% for basic rate taxpayers and 24% for higher rate taxpayers (following the changes in the Autumn 2024 Budget).
Strategic planning before a sale can significantly reduce this liability. Key considerations include:
- Timing the sale across tax years to use annual CGT allowances
- Applying Private Residence Relief if the property was ever your main home
- Letting Relief in specific circumstances
- Gift transfers between spouses to utilise both partners’ allowances
H2 Accounting works with landlords ahead of any planned sale—not just at year-end—to ensure CGT liabilities are managed proactively, not reactively.
Why Choose H2 Accounting as Your Property Accountant?
H2 Accounting is a qualified ICAEW Chartered Accountancy firm with a client-first approach and a strong track record in property accounting across England.
Here’s what sets H2 Accounting apart:
- Specialist knowledge: Deep understanding of UK property tax legislation, HMRC guidance, and landlord-specific reliefs
- Proactive advice: H2 Accounting doesn’t just file your returns—the team flags planning opportunities throughout the year
- Transparent fees: No hidden charges or unexpected bills
- Nationwide service: Based in London, H2 Accounting supports landlords and investors across the whole of England
- Free initial consultation: Book a 30-minute call to discuss your needs before committing to anything
Whether you’re a first-time landlord navigating your first self-assessment or an experienced investor restructuring a large portfolio, H2 Accounting provides the expertise to make smarter financial decisions.
Frequently Asked Questions
Do I need a property specialist accountant if I only have one rental property?
Yes—even a single rental property creates tax obligations. A property specialist accountant ensures your self-assessment is filed correctly, all allowable expenses are claimed, and your tax bill is as low as legally possible. Many landlords with one property are overpaying tax simply because they’re unaware of the deductions available.
How much does a property accountant cost in England?
Fees vary depending on the complexity of your portfolio and the services required. Basic self-assessment filing for a single property landlord typically starts from a few hundred pounds per year. H2 Accounting offers transparent pricing and a free initial consultation so you can understand the cost before committing.
Can a property accountant help reduce my capital gains tax when selling a property?
Yes. A property specialist accountant can identify applicable reliefs, advise on sale timing, and structure transactions to reduce your CGT liability legally. This planning should ideally begin well before the sale, not after.
Is it better to hold rental properties personally or through a limited company?
There is no universal answer. The most tax-efficient structure depends on your income level, portfolio size, financing arrangements, and long-term goals. H2 Accounting provides personalised advice to help you decide which structure is right for your situation.
Does H2 Accounting work with landlords outside of London?
Yes. H2 Accounting is based in London but provides property accounting services to landlords and investors across the whole of England.
Take Control of Your Property Finances
Owning rental property should be a route to financial freedom—not a source of tax stress and admin headaches. A dedicated property specialist accountant gives you clarity, compliance, and the confidence to grow your portfolio on solid financial ground.
