Important changes to property income tax could affect landlords and property investors. If you are considering selling one or more investment properties, now is a sensible time to review your options and plan ahead.

The Government has announced changes to the taxation of property income which will take effect from 6 April 2027.

For individuals receiving rental income, the changes will mean higher rates of Income Tax on property income. This is particularly relevant to landlords with larger portfolios, individuals with multiple buy-to-let properties and those considering reducing or restructuring their property investments.

If you have been considering selling an investment property, releasing capital or disposing of part of your portfolio, the forthcoming changes provide an additional reason to review your position.

At Lewis Mitchell Solicitors, we offer residential and commercial conveyancing services, including our Fast-Track Conveyancing Service for clients requiring an accelerated transaction.

What is changing from 6 April 2027?

Following the October 2026 Budget, the Government confirmed that separate Income Tax rates will apply to property income from April 2027.

The new rates will be:

These rates apply to individuals receiving property income in England, Wales and Northern Ireland, with separate powers available to the devolved governments.

The changes will affect individuals and partnerships receiving rental income. They do not apply in the same way to properties owned by limited companies, which are subject to Corporation Tax rules.

For landlords who rely on rental income as a significant source of their income, the changes could affect the overall profitability of their investments.

What does this mean for landlords with multiple properties?

Landlords with several investment properties may wish to reconsider their longer-term investment strategy.

For some, continuing to hold their existing portfolio may remain the right decision. For others, the forthcoming changes may prompt consideration of whether to:

• Sell one or more investment properties.
• Reduce the size of their property portfolio.
• Release capital tied up in existing investments.
• Dispose of properties requiring significant maintenance or investment.
• Reassess the financial viability of existing rental properties.
• Reinvest capital into alternative investments.

The appropriate course of action will depend on individual circumstances, including rental income, financing arrangements, ownership structure, potential Capital Gains Tax liabilities and future investment objectives.

It is important to obtain appropriate tax and financial advice before making a decision.

Considering selling? Plan your conveyancing early

If you decide that selling one or more properties is the right option, it is worth considering the legal process well in advance.

Property sales can involve a number of matters which may delay completion, including:

• Title investigations and outstanding legal issues.
• Existing mortgages and redemption arrangements.
• Leasehold management information and service charges.
• Property searches and enquiries.
• Tenancies and vacant possession requirements.
• Planning permissions and building regulation documentation.
• Multiple properties being sold as part of a wider portfolio transaction.

Where several properties are involved, coordinating the transactions can require additional preparation and organisation.

Starting the legal process early can help identify potential issues and establish a realistic timetable.

Importantly, completing a property sale before 6 April 2027 will not automatically remove or reduce tax on rental income already received, nor does it guarantee a particular Capital Gains Tax treatment. The new property income tax rates apply to property income arising from the 2027/28 tax year onwards.

The timing and structure of any disposal should therefore be considered with your accountant or tax adviser.

Lewis Mitchell Solicitors – Fast-Track Conveyancing Service

For landlords and investors who have decided to proceed with a sale, our Fast-Track Conveyancing Service provides an accelerated alternative to the traditional conveyancing timetable.

We offer a range of services depending on the urgency and circumstances of the transaction.

24-Hour Exchange

An accelerated exchange service aimed at achieving exchange within 24 hours, subject to the necessary legal requirements and documentation being satisfied.

48-Hour Exchange

An alternative accelerated service for transactions requiring a slightly longer preparation period.

Fixed-Day Exchange

A targeted 10-working-day exchange timetable, incorporating a search package and structured progression of the transaction.

3–21 Day Exchange

For clients requiring an accelerated transaction within an agreed period of between 3 and 21 days.

Same-Day Exchange and Completion

Where circumstances permit, we can also consider transactions requiring exchange and completion on the same day.

Each transaction is assessed individually. The availability and suitability of an accelerated service will depend on the property, title, documentation, searches, enquiries and the cooperation of all parties involved.

An accelerated timetable cannot remove statutory requirements or guarantee that a transaction will complete by a particular date.

Selling an entire property portfolio?

If you own several residential or commercial investment properties, we can discuss the legal requirements involved in disposing of individual properties or a wider portfolio.

Where multiple transactions are involved, early preparation is particularly important to ensure that the relevant title documentation, mortgage arrangements, tenancy information and other legal requirements are addressed.

Our team can assess the proposed transactions and discuss an appropriate conveyancing timetable.

Start planning now

The changes coming into effect on 6 April 2027 provide an important opportunity for landlords and property investors to review their existing investments and consider their longer-term plans.

If you are considering selling a buy-to-let property, disposing of a property portfolio or releasing capital from existing investments, we would be pleased to discuss the conveyancing requirements.

Contact Lewis Mitchell Solicitors

Telephone: 01200 428102

Primrose Dairy, Railway View Road, Clitheroe, BB7 2HE

Ask us about our Fast-Track Conveyancing Service and the options available for your proposed property sale.

Important information: This article is for general information purposes only and does not constitute tax, investment or financial advice. The tax changes discussed apply from 6 April 2027 and are subject to the relevant legislation. The tax treatment of rental income and property disposals depends on individual circumstances and ownership structures. Lewis Mitchell Solicitors provides conveyancing services and does not provide tax or investment advice. Independent advice should be obtained from an appropriately qualified tax adviser before making decisions about the disposal of investment properties.