Tax implications for buy to let properties
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 percent 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)
- Professional advisory costs incurred after the purchase of the property.
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), or click below for a direct link.

