Declaring Rental Income

Key facts

Rental income is reported on the SA105 (UK property) supplementary pages of your Self Assessment return.
You report income on a tax-year basis (6 April to 5 April), using the accruals method or cash basis.
The cash basis is available if your total gross rental receipts are below £150,000.
You must declare all rental income even if it has been collected by a letting agent on your behalf.
Expenses are entered in aggregate — you do not need to list every individual receipt.

Overview

If you receive rental income from UK property, you report it to HMRC through the SA105 supplementary pages of your Self Assessment return. The SA105 covers income from furnished and unfurnished lettings, holiday lets, and other UK property income.^[1]

What Income to Report

You must report all rental income received during the tax year (6 April to 5 April). This includes:

Regular rent payments from tenants
Lump-sum payments such as premiums for granting a lease
Income from property-related services (e.g. parking, laundry)
Any income collected by a letting agent on your behalf (report the gross amount)
Amounts received for allowing access (e.g. wayleave payments)

Agent-collected rent: If your letting agent collects £12,000 rent and deducts £1,200 in management fees, paying you £10,800, you must report £12,000 as income and £1,200 as an expense. Do not simply report the £10,800 you received.

Cash Basis vs Accruals Basis

You can choose to calculate your rental profits on either the cash basis or the accruals basis:^[3]

Feature	Cash Basis	Accruals Basis
Income recorded	When received	When due (earned)
Expenses recorded	When paid	When incurred (liability arises)
Eligibility	Gross receipts under £150,000	Available to all
Loss carry-forward	Limited to property income	Full carry-forward available
Complexity	Simpler	More complex, requires debtors/creditors

Most landlords with straightforward lettings should use the cash basis as it is simpler. You are automatically on the cash basis unless you opt out by ticking the relevant box on the SA105.

Completing the SA105

The SA105 is structured in sections:^[1]

Property income: Enter your total rental income for the year.
Property expenses: Enter your total allowable expenses (in aggregate categories such as repairs, insurance, management fees, etc.).
Finance costs: Enter your total mortgage interest and other finance costs. These are not deducted from income but used to calculate your 20% tax credit under Section 24.
Net profit or loss: The form calculates this automatically.
Losses brought forward: Enter any property losses from previous years.

Tip: If you own multiple properties, you report all UK property income and expenses together on a single SA105. You do not fill in a separate form for each property. However, keeping separate records per property is strongly recommended for your own bookkeeping.

Multiple Properties

All UK property income and expenses are pooled together on the SA105. This means a loss on one property can offset the profit on another within the same tax year. If your total property result is a loss, it carries forward to set against future property profits.^[1]

Property Losses

If your total property expenses exceed your total property income, you have a property loss. This loss:

Can be carried forward indefinitely against future property profits
Cannot usually be offset against other income (employment, self-employment, etc.)
Must be reported on the SA105 so HMRC records it for future use

Common Mistakes to Avoid

Reporting net rent instead of gross: Always declare the full rent charged to the tenant, even if your agent deducts fees before paying you
Deducting mortgage capital repayments: Only the interest element is allowable (as a tax credit), not the capital repayment
Deducting improvements as repairs: An extension or conversion is capital expenditure, not a deductible repair
Forgetting to claim the finance cost tax credit: Enter your mortgage interest in the finance costs section to receive your 20% credit
Missing the deadline: Online returns are due by 31 January following the end of the tax year

Frequently Asked Questions

What is the SA105 form?

The SA105 is the “UK property” supplementary pages of the Self Assessment tax return. It is where you report your rental income, expenses, and net profit or loss from UK property lettings. You can complete it online as part of your Self Assessment return.

Should I use the cash basis or accruals basis?

The cash basis is simpler — you record income when received and expenses when paid. Most landlords with gross receipts under £150,000 use it. The accruals basis records income when due and expenses when incurred, which may be required if your receipts exceed £150,000 or you wish to carry forward losses.

Do I need to report rental income if my agent collects the rent?

Yes. Even if a letting agent collects the rent and deducts their fees before paying you, you must declare the gross rent (the full amount the tenant pays) as income, then claim the agent’s fees as an expense.

What if I make a loss on my rental property?

A property loss can be carried forward and set against future property profits. You cannot usually offset a property loss against other income. Report the loss on the SA105 so HMRC has a record of it for future years.

Sources

Property income: tax return notes (SA105) — GOV.UK
Self Assessment: detailed information — GOV.UK
Cash basis for landlords — GOV.UK

Declaring Rental Income on Your Tax Return