Property
Do I pay tax on rental income?
Yes, rental profit is taxable. You usually report rental income and allowable property expenses through Self Assessment, unless the income is very small and HMRC handles it another way.
Last reviewed: 2 June 2026
Profit, not rent, is taxed
You are normally taxed on rental income after allowable expenses. Mortgage interest relief for residential property is restricted, so landlords should not assume cash profit and taxable profit are the same.
Capital gains are separate
Selling a rental property can create Capital Gains Tax reporting and payment deadlines. That is separate from annual rental income reporting.