How is rental income taxed in the UK?
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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.
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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.
Primary source: gov.uk/renting-out-a-property
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