Glossary · UK

What is Income from Property?

Rental profits taxed as non-savings income at your marginal Income Tax rate.

Full Definition

Income from property (also called rental income or property income) is the profit you make from letting land or buildings in the UK: rent minus allowable expenses such as agent fees, insurance, repairs and mortgage interest (the last as a 20% credit under Section 24, not a full deduction). Property income is treated as non-savings income, sitting above savings and dividend income in the personal tax calculation, and taxed at your marginal Income Tax rate — 20%, 40% or 45% in rUK (19%–48% in Scotland). It is not liable to National Insurance contributions, but if profits exceed around £1,000 (the Property Allowance) you must report to HMRC. Most landlords with property income above £1,000 must complete Self Assessment. Furnished Holiday Lets lost their special tax status from 6 April 2025 and are now taxed as standard rental income.