How do I report rental income on a UK tax return?

Rental profit goes on the property pages of your Self Assessment return: total rent received, less allowable expenses such as letting agent fees, insurance, repairs and service charges. Mortgage and other finance costs are not deducted from profit; instead you get a 20% basic rate tax credit against your bill.

Allowable expenses include letting agent and management fees, landlord insurance, repairs and maintenance that restore rather than improve the property, ground rent, service charges, accountancy fees and utility bills you pay on the tenant's behalf. Most UK residential lettings are treated as a single property business, so profits and losses across several properties are pooled together.

The finance cost restriction applies to individual landlords: loan interest and related costs no longer reduce rental profit directly, and instead a basic rate credit is given after profit is calculated, which can push higher and additional rate taxpayers into paying more tax than the underlying cash profit suggests.

A loss on the UK property business is carried forward against future rental profits rather than set against other income, so it is worth tracking even in years with no tax to pay. Jointly owned property between spouses is normally split 50:50 for tax regardless of the ownership share, unless a valid Form 17 election and matching beneficial ownership are in place.

Landlords with gross rental income under £1,000 in the tax year can use the property allowance instead of deducting actual expenses, which removes the need to report the income at all in most cases, though it rarely suits landlords with real costs to claim.

Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.