# How is rental income taxed in the UK?

> Quick answer · Last updated 4 July 2026

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## In short

Rental profit — rent minus allowable expenses — is taxed as income through Self Assessment. The property allowance covers the first £1,000 of gross rental income; above that you must declare and register if not already in Self Assessment.

Allowable expenses include letting agent fees, maintenance, insurance, and a portion of mortgage interest as a basic-rate tax credit (not a full deduction for higher-rate taxpayers).

Furnished holiday lets and limited companies follow different rules. Keep receipts and use separate bank accounts for rent.

See our rental income tax guide and Self Assessment basics.

## Related

- [Rental income tax UK](https://moneyguide.org.uk/benefits-tax/rental-income-tax-uk/)
- [Self-employment basics](https://moneyguide.org.uk/work-earnings/self-employment-basics/)
- [Buy-to-let yield calculator](https://moneyguide.org.uk/tools/buy-to-let-yield-calculator/)

## Primary source

gov.uk/renting-out-a-property

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.