Rental income, allowable expenses, mortgage interest, and capital gains — we handle every aspect of your landlord tax obligations, accurately and on time.
If you receive rental income from UK property, you are required to declare it to HMRC via a Self Assessment tax return. This applies whether you have one property or a large portfolio, whether you let furnished or unfurnished, whether you let short-term on Airbnb or on long ASTs. The rental income is added to your other income and taxed at your marginal rate — 20%, 40%, or 45% depending on total earnings.
Allowable expenses that reduce your taxable rental profit include letting agent fees and management charges, insurance premiums for the property, repairs and maintenance (not improvements), accountancy and professional fees, utility bills where paid by the landlord, ground rent and service charges, and travel costs to the property for management purposes. Mortgage interest is no longer fully deductible — instead, a 20% tax credit applies for residential landlords under Section 24.
Since April 2020, landlords of residential properties can no longer deduct mortgage interest and finance costs directly from rental income. Instead, you receive a basic rate (20%) tax credit on finance costs. This change significantly affects higher and additional rate taxpayers, who may be paying substantially more tax than before even if their rental profit is unchanged. We analyse your position and model the impact on your tax bill.
If you live outside the UK but receive rental income from UK property, the Non-Resident Landlord (NRL) scheme applies. You should apply to receive your rental income gross (without tax deducted at source) and file a UK Self Assessment return declaring the income. taxvista specialises in non-resident landlord returns including the NRL1 application and SA109 residency pages.
Specialist landlord tax returns from qualified accountants who understand property income.
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