Fact sheet: 'Replacement of Domestic Items’ relief for landlords

More than 436,000 sole traders and landlords have submitted their first quarterly update under Making Tax Digital for Income Tax. However, HM Revenue and Customs (HMRC) has now begun identifying those who have not yet registered and transferring them to the new system proactively.

Revenue Scotland has refreshed its guidance on how Land and Buildings Transaction Tax (LBTT) applies to leases. The update does not introduce new tax rules but provides a useful reminder that further returns may be required when a lease is reviewed, varied, assigned or ended. By treating LBTT as an ongoing responsibility, rather than a one-off task at the start of a lease, property professionals can support compliance by building tax prompts into their lease processes.

Prime Minister Andy Burnham’s first days in office have brought several announcements and appointments with implications for the property sector. Angela Rayner has returned as Housing Secretary, rent controls have been ruled out for England, targeted business rates support has been announced, and Burnham has confirmed that Stamp Duty will not change at the Autumn Budget.

Sole traders and landlords with qualifying income over £50,000 should now be using Making Tax Digital for Income Tax (MTD), and further deadlines in 2027 and 2028 will bring many more agents, property owners, and businesses into the new system. MTD requires affected taxpayers to keep digital records and submit quarterly updates to HMRC using compatible software.