Rental income tax basics
5 min read · 2025-01-15
Rental profit is added to your other income and taxed at your marginal rate, with mortgage interest now restricted to a 20% basic-rate tax credit under Section 24.
- Rental income is taxed as part of your total income each tax year
- You pay tax on profit (rental income minus allowable expenses), not gross rent
- The £1,000 property allowance lets you ignore small rental income
- Section 24 restricts mortgage interest relief to 20% for individual landlords