Tax will be charged on income received from rental properties after allowable expenses are deducted.
However, you are eligible for tax relief on the following:
- The interest on the mortgage
- Rental insurance
- Any maintenance of the property
- Letting agency fees
- 10% of the rental income each year to cover depreciation in the value of furnishings, including sofas and carpets (this does not include fittings such as kitchen units and bathroom suites)
For more information on tax implications of renting property, you can contact your local tax office for a copy of the Inland Revenue Property Income Manual (PIM).
Contact us about buy to let mortgages
Need more information on buy to let mortgages?
Our specialist buy-to-let mortgage advisers are happy to answer any further questions you have on mortgages for rental properties. Call us on 08000 38 37 36.
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