Taxes for UK Landlords

Published:
October 28, 2022

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This information is current and updated to the best of our knowledge as of April 2022.

As a landlord with an investment property, you’re likely to pay tax at every stage of the life of that investment: when you buy the property, when you let the property, and later when you sell or pass it on.

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.

This guide outlines key things to be aware of about the taxes landlords pay and covers some of the ways you can reduce your tax liability.

Although we have tried to cover everything we can in this guide, some of the tax you will have to pay will depend on your other assets and income, so we strongly recommend you should consult a tax professional – ideally one who’s experienced in property taxation – who can help  you invest in a tax-efficient way that’s appropriate for your own circumstances.

Meanwhile, this overview should help you understand your liability so you can budget properly and make sure you don’t get any surprise demands from HMRC!

Here’s a handy summary of the contents so you can jump to any section that’s of particular interest:

  1. What taxes do landlords pay?
  2. What happens if a landlord makes a loss?
  3. Property expenses – what you can and can’t claim
  4. Extra tax savings for married couples
  5. Staying on top of your tax liabilities

Bear in mind, this guide 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.

About Houst London

Houst was launched in London in 2015. Since then, our team has been helping homeowners and landlords across the capital increase their earnings while managing everything for them. We're now the world's largest Airbnb host management service.

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We have teams of professional cleaners, housekeepers and partners to turnaround laundry on-demand, and our London-based team writes your listings, takes photographs and offers expert advice on how to improve your property for business and holiday short-lets. Meanwhile, our pricing specialists are continuously working hard to optimise your occupancy and overall revenue.

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