Property taxation

Rents from letting residential properties are treated as a separate source of income. When working out your total income (profit) from lettings, you can deduct all the costs associated with your let properties, including any interest paid on loans or mortgages used to acquire them. In this way, losses from one property are offset against profits from another.

Renting out part of your home can also count as residential letting, but you can then take advantage of the ‘rent a room' scheme, which allows tax-free income up to £4,250 from letting rooms in your home.

The net income from lettings is added to income from other sources to determine your tax.

Our Private Client team can advise you on what you can and cannot deduct from your total income, and enable you to minimise your overall tax liability.