Tax on Rental Income

 

Income from property rental must be declared in the relevant section of the Self-assessment tax return if it is:

 

• £2,500 or more after allowable expenses

• £10,000 or more before allowable expenses

 

The following expenses are allowable:

 

• letting agents’ fees

• legal fees

• accountants’ fees

• buildings and contents insurance

• mortgage interest (but not capital repayment)

• interest on property loans

• maintenance and repairs to the property (but not improvements)

• utility bills, like gas, water and electricity

• rent, ground rent, service charges

• council tax

• services you pay for, like cleaning or gardening

• other direct costs of letting the property, like phone calls, stationery and advertising

 

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