Property Income That Requires Self Assessment
You must declare ALL property income through Self Assessment to HMRC, regardless of amount. This includes residential lets, holiday homes, Airbnb, commercial property, and rent-a-room income over £7,500.
Residential Landlords
Buy-to-let properties, HMOs, student lets, and assured shorthold tenancies.
Holiday Let Owners
Furnished holiday lets (FHLs) with special tax advantages and criteria.
Airbnb Hosts
Short-term rentals through Airbnb, Booking.com, and Vrbo.
Commercial Property
Office spaces, retail units, industrial units, and commercial leases.
Rent-a-Room Scheme
Renting a room in your main residence (up to £7,500 tax-free).
Non-resident Landlords
UK property owners living abroad – special withholding tax rules apply.
📊 Section 24: Mortgage Interest Relief Explained
Section 24 (Finance Act 2015): Since April 2020, individual landlords can no longer deduct mortgage interest from rental income. Instead, you receive a 20% tax credit on mortgage interest paid.
Before Section 24
Full deduction from income
Full deduction from income
Current (Section 24)
20% tax credit on interest
20% tax credit on interest
Example: £10,000 mortgage interest = £2,000 tax credit (20%). Higher rate taxpayers lose some relief.
Mortgage interest calculator:
20% tax credit: £2,000
Higher rate taxpayer effective loss: £2,000
Estimate only; contact our specialists for precise calculation.
Allowable Expenses for UK Landlords
Most landlords miss legitimate deductions. Here's what you can claim against your rental income:
🏗️ Property Maintenance
- Repairs and maintenance (not improvements)
- Decorating costs between tenancies
- Plumbing, electrical, and heating repairs
💼 Letting Agency Fees
- Letting agent management fees
- Tenant finding fees
- Inventory check-in/check-out costs
📄 Legal & Professional Fees
- Accountant's fees (including this service!)
- Legal fees for tenancy agreements
- Landlord insurance premiums
⚡ Utilities & Services
- Council tax (when property vacant)
- Water rates (if paid by landlord)
- Gas safety & EPC certificates
🚗 Travel & Vehicle Costs
- Travel to inspect property (45p/mile)
- Parking for maintenance visits
- Public transport to property
📱 Other Allowable Costs
- Ground rent and service charges
- Wear and tear allowance (furnished lets)
- Joint property ownership apportionment
🏖️ Furnished Holiday Lets (FHL) Special Rules
Qualification: Available 210 days/year | Let 105 days/year | Not let >31 days continuously
Tax Advantages: Capital allowances on furniture | Profits count for pension contributions | CGT reliefs (Business Asset Disposal Relief) | IHT business property relief
🏡 Capital Gains Tax on UK Property Sales
When you sell a rental property, you may owe Capital Gains Tax (CGT). Reporting deadline: 60 days from completion date for UK residential property.
CGT Annual Allowance
£3,000
(2024/25)
£3,000
(2024/25)
CGT Rates for Property
Basic rate: 18%
Higher rate: 24%
Basic rate: 18%
Higher rate: 24%
📊 Real Example: How We Saved a Landlord £3,890
Client: Mark, London landlord with 3 buy-to-let properties | Rental Income: £72,000 annually
Initial DIY Return: Claimed £18,500 expenses, tax due: £16,740
Our Review Found: Missed Section 24 mortgage credit £2,400 | Unclaimed legal fees £1,200 | Travel costs £780 | Professional subscriptions £450
Result: Total deductions increased to £23,590 | Tax Saving: £3,890
Critical Deadlines for Landlord Self Assessment
5 October
Register for Self Assessment
Register with HMRC if you have new property income. Miss this = £100 penalty.
31 January
Online Filing & Payment Deadline
Submit tax return and pay tax owed. £100 immediate penalty + interest.
60 Days
Property Sale CGT Reporting
Report and pay CGT within 60 days of selling a UK residential property.
Making Tax Digital (MTD) for Landlords
📌 If your gross property income exceeds £50,000, you may need to follow MTD rules from April 2026. Thresholds reduce to £30,000 (April 2027) and £20,000 (April 2028). Quarterly digital reporting replaces the annual return.
📖 Read our complete, detailed MTD guide — including software requirements, quarterly deadlines, and how we manage everything for you.
MTD quarterly update deadlines (summary): 7 Aug, 7 Nov, 7 Feb, 7 May. For full compliance steps, allowances and exemptions, see our main MTD guide →
Our MTD Service: Fixed fee — no software subscriptions. See pricing →
Fixed Fee Service
Landlord Tax Return & MTD Compliance
Transparent pricing with no hidden costs.