If you earn income from letting property in the UK or overseas, you may need to declare it to HMRC through Self Assessment. We help landlords understand what must be reported, what expenses can be claimed, and how to stay compliant—without unnecessary admin.

‍

What counts as property income?

• Rental income received from residential or commercial properties, including houses, flats, offices, shops, or other buildings.
• Income generated from both furnished and unfurnished properties, regardless of whether furniture is provided as part of the letting.
• Letting income arising from land, garages, parking spaces, storage areas, or similar property-related assets.
• Non-cash or non-monetary income, such as services or goods received in place of rent, which must still be included for tax purposes.

‍

Do you need to declare property rental income?

• You receive rent or any other form of income arising from land or property, whether the letting is residential, commercial, short-term, or long-term.
• You let out a property on a short-term, temporary, or occasional basis, even where the activity does not feel like a formal business.
• You earn more than £1,000 in gross property income during a single tax year, before deducting any expenses, meaning the property allowance no longer fully applies.
• You own rental property jointly with another person or receive rental income from property located outside the UK, both of which have specific reporting requirements.

Some income may be exempt or covered by allowances, but many landlords still need to report it.

‍

How is property income taxed?

Property income is taxed on your profits (income less allowable expenses). Most individual landlords use the cash basis by default, although the accruals (GAAP) basis may apply in certain situations or by election.

There are separate rules for:

• UK property income
• Overseas property income

‍

Common allowable expenses

You may be able to deduct costs such as:

• The cost of repairs and ongoing maintenance required to keep the property in a suitable condition for letting.
• Fees paid to letting agents, property managers, or third parties for managing or administering the rental property.
• Insurance premiums relating to the rental property, such as buildings, contents, or landlord insurance policies.
• Utility bills and council tax costs that you pay on behalf of tenants or during vacant periods, where these are your responsibility.
• The cost of replacing domestic items provided for tenant use, such as white goods, furniture, or furnishings, where relief is permitted.
• Relief for finance costs is subject to specific rules.

‍

£1,000 Property Allowance

If your gross property income is £1,000 or less, it may be fully exempt from tax. If it exceeds £1,000, you can choose between:

• Claiming actual expenses, or
• Claiming the £1,000 property allowance instead

How we can help

• Property income registration and Self Assessment
• Calculation of taxable profits
• Advice on allowances and reliefs
• Support for joint owners and overseas landlords
• HMRC compliance and enquiries

‍Not sure?

‍We’ll check for you — quick, clear, and no jargon.