What rental income includes
Who this guide is for: For landlords working out what counts as taxable property income and whether the property allowance or actual expenses is better.
Rental income is money you receive from letting property — usually rent, plus certain other taxable receipts from the property business.
You pay Income Tax on profits after allowable expenses or after claiming the property allowance where you choose that route. For finance costs and the wider landlord picture, see Buy to Let Tax Explained.
Property allowance versus expenses
Typical allowable costs
- Letting agent fees and advertising
- Landlord insurance
- Repairs and maintenance (not capital improvements)
- Accountancy fees for the property business
- Ground rent and service charges you pay as landlord
Residential mortgage interest is restricted for many individual landlords — see Buy to Let Tax Explained for the detail. For the wider cluster, start at the property tax hub.
Calculate SDLT before reviewing ongoing rental tax Use the Stamp Duty Calculator