Estate Agents

If you are buying the trade and assets of an estate agency, Stamp Duty Land Tax (SDLT) may apply to any property included in the deal. Goodwill and other assets are subject to Capital Gains Tax for the seller. As a buyer, you may be able to claim capital allowances on fixtures and equipment. If you are buying shares in a company, Stamp Duty at 0.5% applies to the share purchase price.

Yes. Estate agents in the UK are required to register with HMRC for anti-money laundering (AML) supervision under the Money Laundering Regulations. You must carry out customer due diligence (CDD) checks on buyers and sellers, maintain records, and report suspicious activity to the National Crime Agency (NCA). Failure to comply can result in significant fines and reputational damage.

Commission income earned by an estate agency is treated as trading income and is subject to Corporation Tax (for limited companies) or Income Tax (for sole traders and partnerships). VAT must be charged on commission at the standard rate of 20% if the business is VAT-registered. Self-employed agents operating under a personal trading name must also register for Self Assessment.

If you’re a higher‑rate taxpayer or planning to build a portfolio, a limited company is usually more tax‑efficient. If you’re a basic‑rate taxpayer with one or two properties, personal ownership is often simpler and cheaper. This conclusion is strongly supported by current UK tax rules for 2026, especially Section 24 and corporation tax rates.

The key Capital Gains Tax (CGT) changes affecting UK landlords in 2026 are: a much lower annual allowance, continued higher CGT rates on residential property (18% and 24%), and confirmation that these rules remain in force from 6 April 2026. These changes mean most landlords will pay more CGT when selling rental property.