End of the financial year: Things to consider as an investor

The 5^th April 2026 marks the end of the financial year 2025/26. It is an important day for all taxpayers, including investors. Read on to learn more about the crucial things every investor needs to consider ahead of this date.

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Getting your financial records in order

First and most important is getting all your financial records in order. You will need to provide accurate information about your rental income and expenses to ensure your year-end accounts reflect reality, and that you are paying the right amount of tax. 

To do that, you will need:

• Rental income records – Documents showing all rental income received over the financial year from your UK buy-to-let property. 
• Expenses – Details of all your expenses, including utility bills you pay, repairs and maintenance fees and insurance costs. 
• Mortgage statement – If you use a buy-to-let mortgage, you can claim a portion of any mortgage interest, so make sure you have your mortgage statement to hand. 
• Capital improvements – If you have made any capital improvements, such as adding an extension, this can offset some Capital Gains Tax if you decide to sell in the year ahead. 
• Letting and management costs – Your letting and management agent should be able to provide you with a statement showing their costs over the year.

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What proportion of costs are tax-deductible

Once you have a complete record of all costs, the next thing to understand is how much of each can be claimed against your taxes. For example, you can claim all letting and management fees, but only 20% of mortgage interest. 

It’s also good to know when you can claim them. Capital improvement costs aren’t tax-deductible on your annual income reporting unless you have sold your property. In that case, they can offset some of your capital gains tax liability. 

The best way to know exactly how much of your tax bill you can offset with your expenses is to work through it with your accountant. They will be able to confirm exactly what you can claim without any confusion or risk of being fined for getting the calculations wrong.

They can also advise you on other ways you could legally reduce your tax bill, such as the deductions associated with pension contributions. Again, whether this is feasible will depend on your personal situation and should be discussed with your accountant.

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Understanding the year ahead

Finally, it’s just as important to look forward as it is to look back. All investors need to know what buy-to-let property legislation is coming in the future and how they should respond to it. That could mean legislation around renting, such as EPC requirements or the impact of the Renters' Rights Act on your portfolio. These factors are best discussed with your lettings and management agent, who will be able to give you details on all upcoming changes in the sector and advise on actions you need to take.

The other type of change investors need to be aware of is taxation or financial reporting. The Budget confirmed that there were no significant tax changes to affect investors in 2026/27.

However, financial reporting is changing. All reporting for landlords who earn more than £50,000 in total now needs to be done through Making Tax Digital in the new financial year. If you earn less than that, you will have to report through this mechanism in 2027/28.

In all cases, your accountant will be able to advise on what it means for you, and they will be able to help you comply with the new reporting standard.

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Where to invest in the new financial year

Finally, investors should look ahead at the best places to invest over the rest of 2026. Property investment is a long-term prospect; It’s always worth knowing where the up-and-coming markets are, and understanding the benefits of alternative investments like Purpose-Built Student Accommodation.

Want to learn more about what’s available in 2026? Contact our team of expert consultants today to discover the available opportunities today!