Taxation on Rental Properties


UK Resident Landlords


If you are a landlord resident in the UK your net income from an investment property is subject to income tax. The level that you will pay depends on your other income. You will need to report your taxable income to the Inland Revenue by a self-assessment tax form. We recommend that you take advice from a tax specialist.


The following deductions can be made from your rental income to arrive at the net income, which is subject to tax.


  • Interest on mortgage.
  • Property repairs.
  • Letting and management charges.
  • Buildings insurance.
  • Ground rent.
  • Service charges.
  • Travelling expenses.


Non-UK Resident Landlords


If you are leaving the UK for more than six months, and your usual place of abode is outside the UK, then you will be a non-resident landlord.


In order that we can send you your rental income without deducting tax you will have to complete an NRL1 form. Should we not have confirmation from the Inland Revenue about deducting tax, then we have a legal obligation to deduct tax at source at the usual rate.

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