In short, letting is like any other business: if you make a profit, it’s liable to taxation. However, property tax is a specialist area and navigating the rules can be complicated — particularly for new landlords.
Everyone in the UK pays tax when they buy a property over a certain price (commonly known as ‘stamp duty’), but if a property isn’t your primary residence and you let it out, you are also liable to taxation on:
- the rental profits (by way of income tax)
- any increase in the value over the time that you own the property (by way of capital gains tax)
Bear in mind this is meant as a general overview of the current tax landscape. For further, more in-depth personal tax advice tailored to your specific requirements and circumstances, make sure you seek professional advice from a tax specialist.
This information is current and updated to the best of our knowledge as of April 2022