As a landlord, you can claim any costs that directly relate to renting out or maintaining your properties. This can include:

• Repairs and maintenance costs
• Property management fees
• Insurance
• Legal fees related to renting out your property
• Mortgage interest (under certain conditions)

You don’t have to pay Capital Gains Tax (CGT) on rental income. You will only pay Income Tax and National Insurance on the income you earn from renting your property.
However, when you sell your property, you might need to pay CGT on the profit you make, unless the property is your main residence and hasn’t been rented out at any point.

If you buy a property that isn’t your main home, you could be liable to second home tax, which may include:

• Stamp Duty Land Tax (SDLT)
• Council Tax
• Income Tax on any rental income
• Capital Gains Tax (CGT) if you sell the property and make a profit

The Rent-a-Room Scheme allows you to earn up to £7,500 tax-free per year by renting out part of your home. It’s a useful tax-free allowance to help you be more tax-efficient.

• If your rental income is below £7,500 per year, you won’t owe any tax.
• To report your earnings, you’ll need to file a Self Assessment tax return.

Yes, you can claim the £1,000 property income allowance if you meet the following conditions:

• You’re a live-in landlord
• You rent out property you don’t live in
• Your annual expenses are less than £1,000
• You rent out property through platforms like Airbnb
• You’re not claiming other tax reliefs on your rental income
• If you jointly own property, both owners can claim the £1,000 allowance

Mortgage interest tax relief allows landlords to reduce their tax bill by claiming a tax credit on the interest paid on their mortgage. The relief is granted at the basic rate of 20% on the lower of:

• Finance costs (e.g., mortgage interest)
• Profit from rental income
• Total income