Category: Blogs

What’s in the New Rental Licensing Scheme?

Post author By Nelson
Post date June 7, 2025

The new rental licensing scheme introduced by the council is creating a buzz among landlords and tenants alike. Designed to improve housing conditions and ensure proper landlord conduct, the scheme applies to privately rented properties in selected zones. Landlords will need to obtain a license and meet new requirements, including property standards, safety checks, and documentation.

The scheme is not just about red tape—it aims to raise the overall quality of rental housing, especially in areas with high tenant turnover or reports of poor living conditions.

Why Is This Scheme Coming Now?

The new rental licensing scheme comes in response to growing concerns about substandard private rental housing. Many councils have reported issues such as overcrowding, lack of maintenance, and safety risks. Housing enforcement officers often lack the legal tools to intervene until it’s too late.

Introducing this scheme allows the council to proactively inspect and regulate properties. Landlords will be required to keep up with regular maintenance, electrical and gas certifications, and basic amenities—creating safer, more stable housing for tenants.

Did the Council Ask Local Residents?

Yes, community input was considered during the consultation phase of the new rental licensing scheme. Local residents, landlords, and housing associations were invited to provide feedback. While some landlords raised concerns about extra costs and bureaucracy, many tenants and community members supported the move as a way to hold negligent landlords accountable.

The final version of the scheme reflects this balance: strict enough to ensure standards, but flexible enough to avoid penalizing good landlords.

A Win-Win If It Works

If properly implemented, the new rental licensing scheme could be a win-win. Tenants benefit from better housing and greater accountability. Landlords who already maintain high standards are rewarded with more tenant trust and fewer emergency repairs. And local authorities can more easily track and deal with problematic properties and landlords.

However, execution will be key. Without adequate funding or staff to enforce the rules, the scheme risks becoming a paper exercise rather than a tool for change.

What Happens Next?

Now that the new rental licensing scheme has been approved, a phased rollout is expected over the next few months. Landlords in designated areas will receive notification, along with clear guidance on how to apply and comply. Those who fail to register risk fines, legal action, and potentially being barred from managing rental properties.

The council also plans to publish compliance data, offering tenants more transparency and confidence when choosing a home.

FAQs About the New Rental Licensing Scheme

1. What is the purpose of the new rental licensing scheme?
To improve housing standards in the private rental sector and give councils more authority to enforce them.

2. Who does the scheme apply to?
Private landlords operating in designated areas identified by the council as high-risk or high-need zones.

3. What are the main requirements for landlords?
Landlords must meet safety standards, keep the property in good repair, and obtain a license to rent legally.

4. What happens if a landlord doesn’t comply?
Failure to register under the scheme could result in fines, legal penalties, or a ban on renting out property.

5. How can tenants benefit from the scheme?
Tenants will have better protections, more consistent living conditions, and more options for reporting substandard housing.

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UK Property Market Boom: What’s Driving It in 2025?

Post author By Nelson
Post date June 5, 2025

The UK property market boom in 2025 is drawing widespread attention, and for good reason. Activity levels are rising fast, buyer confidence is rebounding, and lending conditions are improving. But what exactly is fuelling this surge in property market momentum?

UK Property Market Boom Driven by Looser Lending Rules

The UK property market boom is being significantly fuelled by recent changes to mortgage lending rules. In 2025, regulators removed the requirement for lenders to stress-test applicants at rates of 7.25% plus 1%. This single change has made borrowing easier and more affordable, especially for first-time buyers.

Borrowers can now access higher loan amounts, and the pool of eligible homebuyers has expanded dramatically. For example, a couple with a joint income of £62,000 can now borrow nearly £26,000 more than they could under previous rules. This has sparked renewed demand in the housing sector, accelerating the market recovery.

Improved Affordability Supports UK Property Market Boom

Improved affordability is another core reason for the UK property market boom. Mortgage interest rates have begun to decline, and many analysts expect them to fall further throughout the year. The Bank of England is projected to reduce base rates quarterly in 2025, making monthly repayments more manageable for homebuyers.

With borrowing costs lower, the barrier to entry for new buyers is shrinking. This has translated into a sharp uptick in home purchases and remortgage activity, supporting overall market expansion.

Buyer Activity Signals Confidence in the UK Property Market Boom

Home sales are up by 6% compared to the same time last year, marking the busiest period since the pandemic-era spike. The main driver? Increased buyer confidence.

Many buyers who paused their plans due to economic uncertainty in 2023 and early 2024 are now returning to the market. With more favourable borrowing conditions and improved supply, the buying landscape is more competitive and more active than it has been in years.

Regional Trends Amplify the UK Property Market Boom

The UK property isn’t uniform across the country. Rural areas continue to outperform cities in terms of price growth. Since 2020, countryside homes have seen values rise by over 23%, outpacing the 18% growth in urban centres.

This so-called “race for space” that started during the pandemic remains strong. Buyers prioritizing larger homes and outdoor space are driving sustained demand in regions like the Midlands, Wales, and Northern Ireland.

Are Prices Rising Too? Yes, But Only Slightly

The UK property has brought a slight uptick in average home values, but not a runaway surge. The average UK house price has risen modestly by 1.6% year-on-year to around £268,000.

However, sellers are still accepting offers below asking price—by an average of 4.5%, or roughly £16,000 less. This suggests that while demand is up, buyers remain price-sensitive, and sellers are adjusting to realistic market expectations.

Bottom Line: What the UK Property Market Boom Means for You

The UK property market boom in 2025 is real and multi-faceted. Looser lending criteria, lower mortgage rates, increased affordability, and surging buyer demand are all playing their part. However, modest price growth and regional disparities mean that careful planning is still essential for buyers and investors alike.

If you’re considering entering the market, now might be an opportune time—provided you stay informed and strategic.

FAQs:

1. What is causing the UK property market boom in 2025?
The boom is being driven by relaxed mortgage lending rules, falling interest rates, and a rise in buyer demand.

2. Are house prices rising quickly due to the UK property market boom?
No. Prices have increased modestly by around 1.6%, and most sellers are accepting below-asking offers.

3. Are all regions experiencing the UK property market boom equally?
No. Rural areas are seeing stronger growth than urban centres, continuing a post-pandemic trend.

4. Is now a good time to buy in the UK property market boom?
Yes, if you’re financially prepared and have researched local market conditions, it could be a favourable time to buy.

5. How have lending rules changed to support the UK property market boom?
Stress testing for higher interest rates has been removed, allowing buyers to borrow more and qualify more easily for mortgages.

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Is It Time to Rethink the Five-Year Buy-to-Let Mortgage?

Post author By Nelson
Post date June 3, 2025

The five-year buy-to-let mortgage has long been the favorite of UK landlords, offering fixed costs and a sense of security. But with interest rates shifting and lenders tightening criteria in 2025, landlords are starting to ask: Does this type of deal still make sense today?

Here’s a deep dive into the pros, cons, and emerging alternatives to help you decide.

What Is a Five-Year Buy-to-Let Mortgage?

A five-year buy-to-let mortgage gives you a fixed interest rate for five years—ideal for predictable cash flow. This model helped thousands of landlords manage rental income and budgeting with ease. But fixed can also mean inflexible.

Market Conditions in 2025: What’s Changing?

In 2025, mortgage rates are high but stabilizing. Many expect a drop in the Bank of England base rate by late 2025 or 2026. Locking into a long-term fix now could mean overpaying when cheaper rates become available.

Meanwhile, tighter stress testing means some landlords may not qualify as easily for refinancing, pushing them toward shorter, less restrictive products.

Pros of a Five-Year Buy-to-Let Mortgage

Payment Stability: Monthly repayments remain the same for five years.
Budget Planning: Helps landlords accurately forecast rental profits.
Protection Against Rate Hikes: If interest rates increase, your rate stays locked in.

Cons of a Five-Year Buy-to-Let Mortgage

Less Flexibility: You may miss out on better rates if the market drops.
Early Exit Fees: Selling or refinancing before the term ends comes with steep penalties.
Reduced Agility: In a volatile economy, adaptability can be more valuable than stability.

Alternatives to the Five-Year Fix

Many landlords are exploring more flexible mortgage options, such as:

Two-Year Fixes: Short-term security with quicker access to rate drops.
Tracker Mortgages: Float with the base rate, ideal if you expect a cut.
Variable Rates: Often cheaper, but riskier.
Interest-Only Products: Lower monthly costs, but require discipline and an exit strategy.

What Do Landlords Want in 2025?

Landlords are prioritizing:

Stability: Especially for long-term property holds.
Flexibility: For refinancing, selling, or adapting quickly.
Profitability: High mortgage rates squeeze rental yields, so every decision matters.

Should You Still Fix for Five Years?

Ask yourself:

How long do I plan to hold this property?
Am I financially ready to absorb early repayment fees if needed?
Do I expect rates to fall soon?
Am I buying for cash flow or long-term capital growth?

If you’re in for the long haul and want predictable returns, the five-year fix might still serve you. But if you value flexibility in a changing economy, a shorter fix or tracker might be a better fit.

FAQs

1. What is a buy-to-let mortgage?
It’s a loan designed for property investors who rent out their properties. The criteria and rates differ from standard residential mortgages.

2. Why are landlords rethinking fixed-rate deals?
With high interest rates and potential cuts ahead, locking in now could cost more in the long run.

3. Are early repayment charges a problem?
Yes, most five-year fixes come with significant penalties if you exit early—typically 3–5% of the loan.

4. What alternatives are available?
Shorter fixes, tracker mortgages, and flexible products are becoming more popular among landlords in 2025.

5. Should new landlords still consider a five-year fix?
It depends on your strategy. If you want stable cash flow and long-term rental income, it’s worth considering. But weigh the flexibility trade-offs.

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Understanding the SDLT Rule Changes: What UK Property Investors Need to Know

Post author By Nelson
Post date May 24, 2025

Stamp Duty Land Tax (SDLT) is one of the largest up-front costs property buyers face in the UK. Whether you’re purchasing your first rental, expanding your portfolio, or buying through a limited company, any change to SDLT Rule Changes can have a significant impact on your strategy — and your bottom line.

Recently, there have been updates and clarifications to the SDLT framework that every investor should understand. Here’s a clear breakdown of the changes, what they mean for you, and how to make the most of them.

Understanding the SDLT Rule Changes

The UK government has made several adjustments to how SDLT is applied, especially for investors, second-home buyers, and companies.

Here are the key areas that have been affected:

1. Multiple Dwellings Relief (MDR) Reform (Effective June 2024)

The government announced that MDR will be abolished for transactions completing on or after 1 June 2024, unless contracts were exchanged before 6 March 2024.

What was MDR?
MDR allowed buyers of two or more dwellings in one transaction to calculate SDLT based on the average price per dwelling, rather than the total purchase price. This usually led to a significant tax reduction.
Impact of the change:
Investors purchasing blocks of flats, HMOs, or mixed-use buildings will now face higher SDLT bills, as they can no longer apply MDR.

SDLT rule changes

2. SDLT Rule Changes Surcharge for Non-Residents

The 2% non-resident SDLT surcharge introduced in April 2021 is still in force. If you’ve spent less than 183 days in the UK in the 12 months before your purchase, you may be liable for the extra charge.

Tip: UK-resident companies with overseas directors could be caught by this if they’re not careful about meeting the residency test.

3. Commercial vs Residential Classification

Recent HMRC guidance has clarified that certain properties formerly considered “mixed-use” (e.g. flats above shops) may now be fully residential for SDLT purposes — meaning a higher rate could apply.

Always double-check how the property is classified before purchase — especially for semi-commercial deals.

The Good News

Not all is doom and gloom. Some parts of the SDLT framework remain investor-friendly:

1. First-Time Buyer Relief Still Applies

For those entering the market personally (not through a company), the first-time buyer relief remains in place, exempting properties under £425,000 and reducing SDLT up to £625,000.

2. No SDLT on Shares

If you purchase a property-owning company (rather than the property itself), you pay Stamp Duty on shares (0.5%), not SDLT. This structure still offers strategic opportunities for large portfolios — though it’s complex and comes with legal implications.

3. Structuring via Partnerships

Limited Liability Partnerships (LLPs) and other strategic ownership vehicles may still help reduce SDLT in certain cases — provided you follow the rules. HMRC is watching closely, so expert advice is critical.

The Bottom Line

The SDLT rule changes — especially the abolition of Multiple Dwellings Relief — will raise acquisition costs for many UK property investors. This makes upfront tax planning more important than ever.

Frequently Asked Questions (FAQs) About SDLT Rule Changes

1. What is Stamp Duty Land Tax (SDLT)?

SDLT is a tax you pay when buying property or land in England and Northern Ireland. The amount depends on the purchase price, property type, and your status as a buyer (e.g., first-time buyer, company, or overseas investor).

2. When is Multiple Dwellings Relief (MDR) being abolished?

MDR will be abolished from 1 June 2024. If your transaction completes after this date, you will not be able to claim MDR unless you exchanged contracts before 6 March 2024.

3. those the SDLT Rule Changes affect buy-to-let investors only?

While buy-to-let landlords are heavily impacted, the change applies to any buyer of multiple dwellings in a single transaction — including companies and developers.

4. Can I still save on SDLT if I buy through a limited company?

Yes, but not necessarily through MDR. Company purchases are subject to standard and additional rates, and no first-time buyer relief applies. However, SDLT is a deductible cost, and corporate structuring may open other opportunities.

5. Are mixed-use properties still taxed at lower commercial rates?

Not always. HMRC is cracking down on what qualifies as “mixed-use.” To claim the commercial rate, the property must genuinely combine residential and non-residential use (e.g., a shop with a separate flat). Always check how HMRC views the property.

6. How can I tell if a letter or email about SDLT is a scam?

Look out for:

Vague terms like “legal publication fee” or “registry fee”
Requests to pay through QR codes or non-GOV.UK websites

7. What is the non-resident SDLT surcharge and who does it affect?

If you are not UK tax-resident (i.e., you spent fewer than 183 days in the UK in the 12 months before the purchase), you may be charged a 2% SDLT surcharge on top of standard rates.

8. Is buying shares in a property-owning company still a legal SDLT workaround?

Yes, this is still legal and taxed at 0.5% stamp duty on shares instead of SDLT — but the transaction must be carefully structured and reviewed for tax avoidance risks. Always involve a tax advisor and solicitor.

9. Can I appeal an SDLT Rule Changes decision or overpayment?

Yes. If you believe you’ve overpaid SDLT, you can submit a claim for a refund within 12 months of the filing date or within 4 years of the effective transaction date in certain cases. A property tax specialist can help review and process claims.

10. How can I get professional advice for my next property deal?

We offer specialist SDLT reviews, tax planning for buy-to-let and HMO investors, and tailored advice for UK and overseas property buyers.

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Fake Companies House Letters Are Targeting New UK Businesses

Post author By Nelson
Post date May 20, 2025

It starts innocently enough: a newly registered UK company receives what looks like an official Fake Companies House letters the envelope feels formal. Inside is a document stamped with a government-like logo, written in formal language, and bearing a QR code in the corner. The letter claims that the company owes £271.00 for publishing legal information — and warns that failure to pay might affect its registration status.

But here’s the truth: it’s a scam.

Fake Companies House letters are being sent to businesses across the UK, and many unsuspecting business owners are falling victim. In this article, we’ll explore how these scams work, how to spot the red flags, and what steps to take if you receive one.

Why Fake Companies House Letters Are a Growing Concern

In recent weeks, a number of UK startups and newly registered companies have reported receiving these fraudulent letters. At first glance, they appear legitimate:

The language mimics official government correspondence.
The branding is eerily similar to that of Companies House.
QR codes are included to make payment easy — and urgent.

But look closer and you’ll find inconsistencies. Some letters mention vague “legal publication fees,” while others threaten to “deregister” your company if you don’t comply. None of these demands come from Companies House.

These scams target busy entrepreneurs, especially first-time business owners unfamiliar with post-incorporation procedures. That’s what makes them so dangerous.

What’s actually Going On?

The scammers behind these fake Companies House letters are betting on your uncertainty. They craft convincing letters that push you toward a third-party payment platform. Once you scan the QR code or click the link, you’re taken to a payment page that has nothing to do with the UK government. And once you pay? The scammers vanish with your money.

Red Flags to Watch Out For

Not sure if a letter is fake? Here are signs that should raise concern:

✅ Unexpected Payment Requests: Especially those that appear shortly after your company is formed.
✅ Vague Descriptions: Phrases like “legal publication fee” or “company listing services” are not standard requirements.
✅ Non-Government Domains: Anything other than GOV.UK should make you cautious.
✅ Pressure Language: Warnings like “failure to pay may affect your registration status” are often scare tactics.
✅ Imperfect Branding: Slight differences in logo design, font, or colour that don’t match official Companies House correspondence.

What To Do If You Receive a Fake Companies House Letter

Do not pay. Don’t scan the QR code or visit the website.
Do not share the letter with others who might act on it.
Report it to Companies House by forwarding a copy to:
phishing@companieshouse.gov.uk
Shred or securely discard the letter after reporting.
Ask for help. If you’re unsure whether a letter is genuine, consult your accountant or contact a trusted advisor.

At felixAccountants, we frequently review correspondence on behalf of our clients to protect them from scams like this. Send us a copy — we’re happy to verify it.

How to Help Others Stay Safe

If you work with clients, colleagues, or team members who are also business owners, share this article with them. Better still, brief your internal team to:

Stay alert for suspicious letters and emails.
Maintain a list of official contacts and procedures for post-incorporation communication.
Educate new hires and junior staff about these scams — especially those handling mail or admin duties.

Remember: awareness is protection. Scammers rely on silence and confusion. The more people know, the fewer people fall for it.

FAQs About Fake Companies House Letters

❓ Are Companies House letters ever sent by email or post?

Yes, Companies House does send some correspondence by post and email. However, they never ask for random “legal publication” payments or fees through third-party websites.

❓ How can I check if a Companies House letter is genuine?

Check the official GOV.UK website, or email a scanned copy to phishing@companieshouse.gov.uk. Always double-check before paying.

❓ I already paid the scam fee. What should I do?

Contact your bank immediately. Then report the fraud to Action Fraud (the UK’s national reporting centre for fraud and cybercrime).

❓ Can my company be deregistered for not paying?

No. These scams have no legal authority. Your registration status with Companies House will not be affected by ignoring fraudulent letters.

❓ How often do these scams occur?

Unfortunately, they are becoming more common — especially targeting newly formed companies. Scammers know new businesses are less familiar with post-incorporation requirements.

If you’re unsure about a suspicious letter, don’t risk it — ask for help. Staying informed is your first line of defence.

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How Long Does Probate Take in the UK in 2025?

Post author By Nelson
Post date May 17, 2025

When a loved one passes away, managing their estate can feel overwhelming. The probate process—used to legally administer the estate—often raises the most questions. Chief among them is: Discover How Long Probate in the UK takes?

The answer depends on many factors, including the complexity of the estate, the presence of a valid will, tax issues, and how quickly documents are gathered and submitted. While simple cases may conclude within a few months, others can stretch over a year.

Typical Probate Timelines in 2025

Probate in the UK generally takes 6 to 12 months for simple estates. However, larger or disputed estates can take significantly longer. Since January 2025, the UK Probate Registry has improved processing speeds for straightforward applications—but delays remain common.

Estate Type	Estimated Duration
Simple estate with will	6–9 months
Simple estate without will (intestacy)	6–10 months
Complex estate (overseas assets, disputes, trusts)	12+ months

Has the Probate Process Improved Since 2024?

Yes—but not for everyone.
In July 2024, the average probate processing time was 9.3 weeks, an improvement from 14 weeks in July 2023. For simple wills, probate grants now take 4 to 8 weeks, down from the previous 16-week average.

However, estates involving international elements or significant assets still experience delays of 16–20 weeks or more, especially where inheritance tax (IHT) is involved.

Step-by-Step: The UK Probate Process in 2025

Here’s a simplified breakdown of the probate process, from gathering paperwork to final distribution of assets:

Step	Action	Time Frame
1	Gather documents & assess estate value	4–8 weeks
2	Submit inheritance tax forms to HMRC (if needed)	1–2 weeks
3	Wait for HMRC response & tax reference codes	4–6 weeks
4	Complete & submit probate application	1–2 weeks
5	Wait for Grant of Probate or Letters of Administration	8–16 weeks
6	Collect assets, pay debts, and distribute estate	6–12 months

Key Stages in More Detail

1. Valuation of Assets

Before applying for probate, the executor must identify and value all estate assets—bank accounts, properties, pensions, shares, and personal items. This step forms the basis of inheritance tax calculations.

2. Inheritance Tax Submission

If the estate exceeds the tax-free threshold (£325,000 as of 2025), IHT must be reported and paid—often before probate is granted. Estates eligible for reliefs (e.g., spousal or business relief) may reduce this burden.

3. Applying for the Grant of Probate

This legal document allows executors or personal representatives to access and manage the deceased’s estate. Without it, banks and institutions won’t release funds.

4. Debt Repayment

All outstanding debts—including credit cards, loans, and final utility bills—must be paid before distributing assets to beneficiaries.

5. Distributing the Estate

Once liabilities are settled, the remaining estate is distributed per the will (or under intestacy rules if no will exists). This can be straightforward or complex, depending on the number and location of beneficiaries.

Factors That Can Delay Probate

Several issues can slow down probate processing:

Missing or unclear wills
Overseas property or beneficiaries
Disputes between heirs
Inheritance tax complications
Lost or delayed paperwork
Court backlogs

Taking steps early—like professional estate planning or will registration—can help your loved ones avoid unnecessary delays.

FAQs: UK Probate Process in 2025

1. How long does probate take in the UK if there’s a will?

For simple estates with a will, probate can be completed in 6–9 months, assuming no disputes or inheritance tax complications.

2. Does probate take longer without a will?

Yes. When no will exists (intestacy), the estate must follow statutory distribution rules. This adds complexity and can extend the process to 9–12 months or more.

3. What’s the fastest probate can be completed?

In rare, straightforward cases—especially where no tax is due—probate may complete in as little as 2–3 months. However, this is not the norm.

4. What causes delays in probate?

Common causes include tax issues, missing documents, property sales, legal disputes, and delays from HMRC or the Probate Registry.

5. Can I speed up the probate process?

You can help by gathering all required documents early, submitting tax forms promptly, and seeking professional advice. Avoiding disputes is also key.

Patience with Preparation Saves Time

Probate is rarely fast, but it’s often predictable. Knowing what to expect—and preparing early—can save months of delay. Whether you’re an executor handling probate now or planning ahead for your own estate, understanding the 2025 process helps protect your time, money, and peace of mind.

If the estate is small and simple, probate may only take a few months. But if the estate is large, complex, or disputed, expect a longer journey. Be informed, stay organized, and don’t hesitate to get professional guidance.

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why Selling Your Business Before April 2026

Post author By Nelson
Post date May 15, 2025

For many business owners, selling their company marks the culmination of decades of hard work and success. It’s a moment to cash in on years of sacrifice or to move on to new ventures. However, timing is critical when considering the sale. A significant tax change is on the horizon that could dramatically affect the profitability of selling your business, making it crucial to act before April 2026.

The UK government has announced a sweeping increase in Capital Gains Tax (CGT) rates for those eligible for Business Asset Disposal Relief (BADR). The tax change could cost entrepreneurs tens of thousands of pounds in additional tax if they wait too long to sell. Here’s why selling before April 2026 might be the smartest financial decision you make.

Why Waiting Could Cost You

When it comes to selling a business, time isn’t just money—it’s also the key to maximizing your profit. Under the current tax law, the CGT rate for individuals who qualify for BADR is 14% on the first £1 million of lifetime gains. However, starting in April 2026, the rate will increase to 18%. This shift means that the longer you wait, the more you’ll pay in taxes.

For example, let’s look at a simple scenario. If you sell your business now and make £1 million in profit, the tax you’ll pay is £140,000. However, if you wait until after April 2026, that tax bill rises to £180,000. This represents an additional £40,000 to £80,000 in taxes—an amount you could use to fund new investments, retire comfortably, or even reinvest in your next business.

How Much Will You Really Lose?

It’s not just the total tax amount that could hurt business owners. Delaying the sale could also affect how much you get to keep after the transaction. Suppose you’re selling for £3 million, for example. Under the current tax regime, the tax bill might be in the region of £420,000. But post-2026, that figure could rise to £540,000.

Why Selling Your Business Before April 2026 — April 2026

This increase may not sound like a huge jump at first, but when it comes to selling a business that you’ve spent decades building, every penny matters. By acting now, business owners can avoid this tax hike and preserve more of the sale’s proceeds.

The Impact of Timing on Your Business Sale

Timing your exit strategy is always tricky, but in light of the new tax rules, it’s more important than ever. The government’s decision to increase CGT rates for BADR-eligible business owners means that the clock is ticking, and every delay could cost you more. But there’s good news: There’s still time to act.

Business owners looking to sell should begin preparing their business for sale sooner rather than later. This gives you enough time to maximize the value of your company, find the right buyer, and ensure that you can complete the sale before April 2026.

Buyers Are Looking Too

The potential tax increase could also impact buyers. If they anticipate higher tax liabilities after the change, they might offer less for the business now in anticipation of higher taxes in the future. This means that waiting may not only result in higher taxes for you but also a lower sale price.

While this could be a negative for sellers, it also presents an opportunity. The upcoming tax changes might encourage buyers to act now to avoid the higher rates, which could create a more competitive environment for sellers. As the tax increase draws nearer, more buyers might be eager to lock in a deal, giving business owners more leverage in negotiations.

Why You Should Sell Now

If you’re considering selling your business, now might be the right time to act. The increase in CGT rates scheduled for April 2026 could cost you tens of thousands of pounds, but by selling before the change, you can avoid this hefty tax hike. Even if you’re not yet ready to exit, start planning your strategy today to ensure that you make the most of the current tax benefits.

Waiting to sell your business could mean paying more tax and receiving less money from the sale. So, before you make any final decisions, consider the financial implications of the upcoming CGT increase and act accordingly.

FAQs

1. What is Business Asset Disposal Relief (BADR)?
BADR is a tax relief scheme that reduces the rate of Capital Gains Tax (CGT) for business owners selling their businesses or shares in a business. Currently, the CGT rate is 14% for the first £1 million of lifetime gains.

2. How much will the CGT rate increase in 2026?
Starting in April 2026, the CGT rate under BADR will rise from 14% to 18%, which could significantly increase the tax liability for business owners selling their businesses.

3. Why should I sell my business before April 2026?
Selling your business before April 2026 allows you to take advantage of the current 14% CGT rate, potentially saving you tens of thousands of pounds compared to the 18% rate that will apply after the tax change.

4. How much tax will I pay if I sell my business after April 2026?
If you sell your business after April 2026, you will pay 18% CGT on the first £1 million of lifetime gains. This could increase your tax bill by up to £80,000 compared to selling before the tax change.

5. Will buyers be affected by the new CGT rates?
Yes, buyers could be impacted by the upcoming CGT increase, which may lead them to offer lower prices or act more quickly to secure a deal before the tax hike.

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UK–India Free Trade Agreement: A Game-Changer for Businesses on Both Sides

Post author By Nelson
Post date May 13, 2025

On 6 May 2025, the UK–India Free Trade Agreement made history by signing a landmark Free Trade Agreement (FTA). This deal is being hailed as the most ambitious trade pact either nation has entered into. According to UK Prime Minister Sir Keir Starmer, it’s the “biggest trade deal” since Brexit. Indian Prime Minister Narendra Modi called it a “landmark” for India.

The numbers are compelling. The UK government estimates that the agreement will boost annual trade by £25.5 billion over 15 years, and increase the UK economy by £4.8 billion per year. But what does this actually mean for businesses, professionals, and consumers in both countries?

Tariff Reductions: Big Wins for Key UK Industries

Alcohol and Spirits

British whisky and gin exports to India will benefit from a dramatic tariff cut. Currently, India imposes a 150% tariff on these products. That will be slashed to 75% immediately, with a further reduction to 40% over 10 years.

This alone is projected to increase Scotch whisky exports by £1 billion over five years, supporting an estimated 1,200 UK jobs, especially in Scotland’s distillery regions.

Automotive Sector

India’s notoriously high tariffs—often exceeding 100%—on imported cars will be trimmed down to 10% under a new tariff-rate quota system. This benefits UK manufacturers of electric vehicles and luxury brands, who have long struggled to enter the Indian market competitively.

Other Exports

UK-made products such as cosmetics, aerospace components, biscuits, salmon, electrical machinery, and medical devices will see either reduced or eliminated tariffs. This boosts their price competitiveness in one of the world’s largest consumer markets.

Digital Trade and Services: A Modern Framework

The FTA isn’t just about goods—it also modernizes how services and digital trade are conducted between the two nations. Here’s what stands out:

Recognition of electronic contracts and signatures, speeding up legal processes
A ban on data localisation requirements, giving UK firms more freedom to manage data
Protection for source code and encryption technologies, reducing IP theft risk

These terms will especially benefit UK-based service providers in IT, finance, law, consulting, and education. With India’s digital economy booming, the timing is perfect.

Professional Mobility and Social Security: Lower Costs, Greater Flexibility

A standout feature of this FTA is the Social Security Protocol. Under this clause, Indian professionals working temporarily in the UK—and vice versa—will be exempt from paying social security in both countries for up to 3 years.

This lowers employment costs for businesses and removes one of the key financial barriers to posting skilled workers overseas.

Government Procurement and Investment Access

UK firms will now be able to bid for public procurement contracts in India, including those at state and central levels. This opens up huge opportunities in sectors such as:

Infrastructure
Renewable energy
Development projects

In addition, the FTA introduces:

Fair and equitable treatment clauses to protect UK investors
Commitments for transparent and predictable investment environments
Provisions that facilitate cross-border investments

For Indian firms eyeing the UK, the deal offers clarity on corporation tax, capital gains exemptions, and access to UK government tenders.

What This Means for Accountants, Tax Advisors, and SMEs

If you’re an accountant, tax advisor, or SME owner, now is the time to reassess your India strategy. The new agreement opens doors for exports, outsourcing, and cross-border partnerships that were previously too complex or expensive to pursue.

Here’s what you should do next:

Review tax implications: Look at how changes in withholding tax, VAT rules, and cross-border taxation affect your business model.
Update compliance strategies: Consider the social security exemption clauses and their effect on payroll and HR planning.
Re-evaluate transfer pricing: Ensure your pricing arrangements still comply with international and domestic tax rules under the new regime.
Review permanent establishment risks: Cross-border services could trigger unintended tax liabilities unless structured correctly.

The UK–India Free Trade Agreement is more than just a trade pact—it’s a strategic reset. It simplifies access to two of the world’s most dynamic economies. For exporters, investors, and service providers, the potential gains are massive.

Now is the time to act. Businesses that move early will be best positioned to take full advantage of the new rules, reduced tariffs, and expanded access to customers, talent, and capital.

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UK Rental Market Trends: A Surge in Demand as 2025 Unfolds

Post author By Nelson
Post date April 15, 2025

The UK rental market is showing signs of life as we move into 2025, with increased tenant demand in the first quarter of the year. Despite a minor decline from the same period last year, the market is experiencing a noticeable recovery, signaling a resilient housing sector. New data from Zero Deposit reveals regional variations in tenant demand, with some areas witnessing significant growth while others face a drop in interest.

Rising Demand in West Sussex and Other Key Regions

The latest report highlights West Sussex as the most in-demand rental region in the UK. The data shows that 28.2% of properties were let in the first quarter, marking a modest 0.5% rise from the previous quarter, but still 3.6% lower than this time last year. Despite this dip compared to 2024, the trend indicates that rental demand remains strong overall, with many regions seeing a notable increase in activity.

Persistent Imbalance Between Supply and Demand

While there has been a slight uptick in demand from the last quarter, the fundamental issue of supply shortages continues to dominate the market. Experts had cautioned that the slowdown at the end of 2024 might not indicate a long-term trend. The first quarter of 2025 has proven them correct, with demand still outpacing supply, driving competition and fueling higher rental prices.

The peak moving season in spring and summer, which traditionally sees more tenants seeking new homes, is expected to exacerbate the pressure in the coming months. As rental listings become more competitive, tenants must act quickly to secure available properties.

Regional Variations in Demand

In terms of regional performance, Isle of Wight topped the demand table, showing a remarkable 17.2% increase in tenant activity. Other regions with strong growth include Rutland (14.1%), Herefordshire (8.4%), Wiltshire (7.3%), and Gloucestershire (7%). Several counties, such as Suffolk, Lincolnshire, and Devon, also reported notable increases in tenant activity, outperforming the national average.

At the opposite end of the spectrum, some areas saw a decrease in interest. Warwickshire experienced the biggest drop, with a 7.7% fall in demand, followed closely by Southampton and Tyne and Wear (7.3%), Merseyside (5.6%), and South Yorkshire (5.6%). These areas are currently witnessing less tenant activity, highlighting stark contrasts between regions.

Quick Lettings in High-Demand Areas

Certain areas also stand out for the speed at which rental properties are being let. West Sussex led with 51% of properties being let quickly, followed by Suffolk (49.1%) and Wiltshire (49%). The Isle of Wight, Rutland, and Somerset also saw high turnover rates, indicating strong demand and fast-moving rental markets.

On the other hand, regions like West Yorkshire, Nottinghamshire, and South Yorkshire experienced slower letting activity, with tenant demand being weakest in these areas. These disparities show the varied dynamics of the UK rental market, where local trends can dramatically affect rental availability and pricing.

Outlook for the UK Rental Market

Looking ahead, the UK rental market in 2025 is expected to face continued pressure as supply struggles to meet the growing demand. With the peak rental season just around the corner, it will be interesting to see whether landlords and developers can increase the availability of rental properties to alleviate the strain on the market.

Regional trends will continue to play a significant role, with high-demand areas like West Sussex, Wiltshire, and The Isle of Wight potentially seeing further price hikes due to competition. Meanwhile, areas with declining demand may experience a slowdown in rent increases, potentially offering some relief to tenants in those regions.

As the year progresses, the persistent supply-demand imbalance remains a key factor that will shape the UK rental landscape. All eyes will be on how the market evolves, especially in terms of rental prices, tenant turnover, and overall market activity.

FAQs on the UK Rental Market in 2025

Which region is the most in-demand for rentals in 2025? West Sussex emerged as the most in-demand rental region, with 51% of properties being let quickly in the first quarter of 2025.
How much has tenant demand increased in the first quarter of 2025? Tenant demand saw a 0.5% increase from the last quarter of 2024, though it remains 3.6% lower compared to the same time in 2024.
What causes the imbalance between supply and demand in the rental market? The primary issue is that tenant demand continues to exceed the available supply of rental properties. This imbalance leads to increased competition for available rentals and rising rent prices.
Which areas experienced a drop in tenant demand? Regions like Warwickshire, Southampton, and Tyne and Wear saw the biggest drops in tenant demand, with declines ranging from 5.6% to 7.7%.
How fast are properties being let in high-demand areas? West Sussex leads the charge with 51% of properties being let quickly. Other areas with fast-moving markets include Suffolk, Wiltshire, and The Isle of Wight.
What does the future look like for the UK rental market? The rental market is expected to remain under pressure, with competition for available properties intensifying as the spring and summer moving season approaches. Supply will continue to struggle to keep up with rising demand, particularly in high-demand regions.

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Why Every UK Landlord Needs a Property Accountant

Post author By Nelson
Post date April 10, 2025

Managing property Accountant finances in the UK is not always simple. Tax rules are complex. Regulations keep changing. Without expert help, landlords and property investors can lose money, miss tax-saving opportunities, or fall behind on compliance.

What Does a Property Accountant Do?

A property accountant helps landlords, investors, and real estate firms manage taxes and finances. Their job goes far beyond filing tax returns. They provide advice on tax planning, cash flow, and investment strategy.

Here are a few things a property accountant handles:

Rental income tax and deductible expenses
Capital Gains Tax (CGT) on property sales
Stamp Duty Land Tax (SDLT) calculations
VAT on commercial property deals
Structuring investments using companies or SPVs
Preparing annual accounts and financial reports
Filing self-assessment or corporation tax returns
Helping clients stay compliant with HMRC rules

Why Is a Property Accountant Important?

1. They Help You Save Money on Tax

UK property tax is full of legal ways to reduce your bill—if you know where to look. A property accountant can help you claim all allowable expenses, choose the best ownership structure, and time your sales to reduce CGT.

2. They Keep You Compliant with HMRC

Missing deadlines or submitting wrong tax returns can lead to penalties. A specialist ensures you follow HMRC rules, submit the right forms, and stay up to date with regulation changes.

3. They Support Your Growth

Thinking of expanding your portfolio? A property accountant helps you plan with confidence. They guide you on investment strategy, cash flow, and company structure.

What to Look For in an accountant

Choosing the right accountant makes a big difference. Here’s what to check:

✅ Experience with Property Clients

Look for someone who understands buy-to-let tax, SPVs, non-resident landlord rules, and VAT.

✅ Professional Qualifications

Your accountant should be certified by bodies like ACCA, ICAEW, CIOT, or AAT. These show their knowledge and ethical standards.

✅ Good Use of Technology

Top firms use tools like Xero, QuickBooks, or Landlord Vision. These tools make bookkeeping, reporting, and tax filing much easier.

✅ Clear Communication

Avoid jargon. A good accountant explains things in simple terms and gives advice you can use.

Why Choose Felixaccountants?

At Felixaccountant, we focus 100% on the property sector. Our team helps landlords, investors, and property businesses across the UK manage their finances, reduce tax, and stay HMRC compliant.

Here’s what makes us different:

✅ Specialist in Property Tax: We know CGT, SDLT, VAT, and rental income rules inside out.
✅ Tailored Advice: Whether you own one flat or fifty, we build a plan around you.
✅ Transparent Pricing: No hidden fees. You’ll always know what you’re paying for.
✅ Proven Trust: Our clients trust us. Just check our Google and Trustpilot reviews.
✅ Modern Tools: We use top accounting software to keep things smooth and accurate.
✅ Strategic Thinking: We go beyond taxes. We help you grow your property wealth.

Property Accountant

A Felixaccountants is not just a tax filer. They are a long-term partner in your property journey. They help you save money, avoid penalties, and build a more profitable portfolio.

Whether you’re just starting or growing fast, having the right expert on your side can make all the difference.

Contact Felixaccountant today for a free consultation.

FAQs: Choosing the Right Property Accountant in the UK

1. What does a property accountant do?

A property accountant helps landlords, investors, and real estate businesses manage taxes, finances, and compliance. They handle rental income tax, Capital Gains Tax, VAT on properties, investment structuring, and HMRC filings.

2. Why should I hire a property accountant instead of a general accountant?

Property tax rules are complex and constantly changing. A property accountant has specialist knowledge in areas like buy-to-let taxation, SPVs, VAT, and Capital Allowances—ensuring better tax savings and full HMRC compliance.

3. Do I need a property accountant if I own just one rental property?

Yes. Even first-time or single-property landlords can benefit from expert advice on allowable expenses, mortgage relief, and structuring. It helps avoid penalties and boosts profitability.

4. Can a property accountant help with Capital Gains Tax (CGT)?

Absolutely. A property accountant can advise on when and how to sell properties, claim reliefs, and reduce CGT liabilities using legal strategies tailored to your situation.

5. What is the best structure for property investment—personal or company?

This depends on your goals. A property accountant will assess whether personal ownership, a limited company, or a Special Purpose Vehicle (SPV) provides better tax efficiency and liability protection.

6. How can a property accountant help with VAT on commercial properties?

They guide you on when to opt to tax, how to reclaim VAT on purchases or construction, and how to manage VAT on leases and sales. This can prevent costly mistakes and maximise recovery.

7. What software do property accountants use?

At UK Property Accountant, we use cloud-based software like Xero, QuickBooks, and Landlord Vision to streamline your finances, automate reporting, and maintain real-time compliance.

8. What qualifications should I look for in a property accountant?

Look for certifications like ACCA, ICAEW, CIOT, or AAT. These ensure the accountant is trained, experienced, and held to professional standards.

9. Do you help non-resident landlords?

Yes. We assist overseas property owners in meeting their UK tax obligations, managing rental income, and staying compliant with the Non-Resident Landlord Scheme.

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