If I'm considering investing in buy-to-let in 2026, how will the rumoured changes to Capital Gains Tax and Mortgage Interest Relief impact profitability for a higher-rate taxpayer, and are there specific ownership structures (e.g., limited company) that would be more beneficial?
Quick Answer
For higher-rate taxpayers, direct BTL ownership is less tax-efficient due to Section 24 and 24% CGT. A limited company allows full mortgage interest deduction and 19-25% Corporation Tax, potentially increasing profitability for 2026 BTL investments.
About This Topic
2026 Buy-to-Let tax implications for higher-rate taxpayers explained. Learn about Section 24, 24% CGT, and how limited companies can optimize profitability with 19-25% Corporation Tax and full mortgage interest deductions.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
Expert Guidance from Steven Potter
Steven Potter is a UK property investment coach with a £1.5M portfolio and over 5 years of hands-on experience. He has helped over 1,000 students achieve their property investment goals through practical, ethical strategies.
Ready to Take Action?
Get personalised property investment coaching with Steven Potter's Property Freedom Framework.
Learn about the Property Freedom Framework