Property

UK landlord tax: how rental income is reported in 2026

Gross rents count toward MTD thresholds. Finance costs are restricted for many individual landlords. Get the records right before the quarterly dates arrive.

Rental income still goes on a tax return

If you let property in the UK, the profit is usually reported through Self Assessment (or MTD quarterly updates once you are in scope). Joint owners report their share. A limited company landlord is a different regime — Corporation Tax, not the property pages of a personal return.

Expenses you can still claim

Repairs, insurance, agent fees, ground rent and replacement of domestic items (on the replacement basis) commonly reduce profit. Mortgage interest for individual landlords of residential property is not deducted in full — you receive a basic-rate tax reduction instead. That catches people out every year.

MTD and landlords

Gross property income (before expenses) is part of qualifying income. Combined with self-employment, it can push you into Making Tax Digital even if the profit is modest. Keep digital records if you are close to £50,000 now or £30,000 next year.

We handle landlord returns as part of personal tax and advise on whether a company structure is even worth discussing. See also who we help — individuals.

This article is general information for UK readers, not personal tax advice. Rules change. Check GOV.UK or speak to us before you file.

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