Do I pay tax on rental income in the UK?
By the VoxaMTD team. Last verified 31 October 2026
Yes, you pay tax on rental profit, which is income after allowable expenses. The first £1,000 of your income from property rental is tax-free under the property allowance. Above that you report the income to HMRC.
You must report on a Self Assessment return if your profit is over £2,500 after allowable expenses, or if your rental income is over £10,000 before expenses. If your income is between £1,000 and £2,500, contact HMRC.
Allowable expenses include letting agent fees, insurance, repairs and maintenance, utility bills, Council Tax and accountants' fees. They do not include capital expenditure, such as buying or renovating a property beyond repairs.
Individual landlords paying Income Tax cannot deduct mortgage interest as an expense, but receive a tax reduction instead. If you do not usually file a return, register by 5 October after the tax year in which you first had rental income.
Read next
- What is Rental income? →
- Rental Income Tax Tips for UK Landlords (2026) →
- Rental income tax calculator →
- Year-end Self Assessment →
Sources
- GOV.UK: Renting out a property: paying tax
- GOV.UK: Income Tax when you rent out a property: working out your rental income