How is rental income taxed in the UK?
Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.
In short: Rental profit — rent minus allowable expenses — is taxed as income through Self Assessment. The property allowance covers the first £1,000 of gross rental income; above that you must declare and register if not already in Self Assessment.
Content updated:
Allowable expenses include letting agent fees, maintenance, insurance, and a portion of mortgage interest as a basic-rate tax credit (not a full deduction for higher-rate taxpayers).
Furnished holiday lets and limited companies follow different rules. Keep receipts and use separate bank accounts for rent.
See our rental income tax guide and Self Assessment basics.
Primary source: gov.uk/renting-out-a-property
Part of our Benefits & tax
This quick answer sits inside our wider benefits & tax hub — with sub-guides, calculators and step-by-step explainers on the same topic.
Read the full benefits & tax guide →