Rental income
Property tax returns, mortgage interest relief and Making Tax Digital for landlords, from one buy-to-let to a growing portfolio.
Who it's for
- Buy-to-let landlords
- Accidental landlords
- Holiday let owners
- Landlords with several properties
What's included
- Property income tax return
- Allowable expenses and repairs checked
- Mortgage interest tax credit claimed
- MTD for landlords set up
- Joint ownership splits handled
- Advice on owning property personally or through a company
Key rules
- 20%
- Tax credit on mortgage interest, instead of deducting it from rent
- £1,000
- Property allowance: rental income up to this is tax-free
- April 2026
- MTD starts for landlords with property and self-employment income over £50,000
- 60 days
- To report and pay Capital Gains Tax after selling a UK home you rented out
- April 2027
- Tax rates on property income rise by 2 percentage points
Keep repairs and improvements separate. Repairs come off your rental profit, improvements usually don't.
Worth knowing
Common questions
You can't deduct mortgage interest from your rental profit. Instead you get a tax credit of 20% of the interest. The capital part of your repayments isn't allowable at all.
It can save tax for higher-rate landlords building a portfolio, but it brings extra costs, often higher mortgage rates, and more tax when you take money out. We run the numbers for your situation.
Up to £1,000 a year of property income is covered by the property allowance. Above that you need to declare it. Renting a furnished room in your own home can be tax-free up to £7,500 a year under Rent a Room.
You must report and pay any Capital Gains Tax within 60 days of completion. Tell us early so we can work out the gain and any reliefs before the deadline.
General information only, not personal advice. Correct as of October 2026.
Get a price for rental income
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