Answers
Do I have to declare rental income if I make no profit?, If your gross rent exceeds £1,000 you must report it, even at a loss. Only the mortgage interest element attracts relief, and personally held residential lets get that as a 20% tax reducer rather than a deduction, so many landlords who feel they break even actually have taxable profit.
What can a landlord deduct from rental income?, Letting and management fees, repairs and maintenance, landlord insurance, ground rent and service charges, safety certificates, accountancy fees, and replacement of domestic items in furnished lets. Improvements and the capital part of mortgage payments are not deductible against rent.
How do I declare rental income I never told HMRC about?, Through the Let Property Campaign. Notify HMRC, then you have 90 days to submit the disclosure and pay. Unprompted disclosures carry much lower penalties than ones made after HMRC contacts you.
How many years of undeclared rent will HMRC go back?, Broadly four years where reasonable care was taken, six where careless and up to twenty where deliberate, with a longer window for offshore matters.
Is it better to buy property through a limited company?, A company deducts mortgage interest in full and pays 19% to 25% corporation tax, which suits landlords retaining and reinvesting profits. Extracting the money is taxed again, and moving existing property in triggers capital gains and additional-dwelling stamp duty, so it must be modelled rather than assumed.
What tax do I pay when I sell a rental property?, Capital gains tax at 18% within the basic-rate band and 24% above it for residential property, reported and paid within 60 days of completion. Purchase costs, stamp duty, legal fees and capital improvements reduce the gain.
Do I pay UK tax on rent from a property abroad?, If you are UK resident, yes, computed under UK rules and reported on the foreign pages, with credit for overseas tax paid under the relevant double taxation treaty.
What happened to furnished holiday lettings?, The regime was abolished from April 2025. Those properties now follow ordinary property rules, losing the full interest deduction, capital allowances and business asset disposal relief on sale.
When does Making Tax Digital affect landlords?, From April 2026 for qualifying income above £50,000, with lower thresholds phased in afterwards. It means digital records and quarterly updates rather than one annual return.
Do you offer free advice to landlords?, Basic questions are answered free. Disclosures, computations, HMRC correspondence and written advice are chargeable and quoted in writing before we start.