Doing a Tax Return when Renting your Apartment

If you own an apartment and decide to rent it all out or just a room, you may need to do a tax return. This article will provide more details about the Inland Revenue rent-a-room-scheme as well as different scenarios where you may need to complete a tax return:

Renting an Apartment

If you own an apartment and decide to rent it out then technically it will be treated as a business. If you own more than one property, they will all be grouped as part of the business.

Tax on Rent

You will be taxed on any profit that you make from renting your apartment or properties. Your profit will be calculated by taking your rental income and deducting any allowable expenses such as mortgage interest payment, letting agent fees and insurance.

Offsetting Losses

If you rent more then one apartment or property and you make a loss from one because you could not find a tenant for example. You are able to offset any losses from one property to all the other properties to reduce your overall tax bill.

Completing a Tax Return

If you do rent a property and need to do a tax return you get one of our accountants to complete an online tax return for you.

Getting Rental Income Tax Free

You can rent a room in your house tax free under the Inland Revenue’s rent a room scheme. As long as you are letting a furnished property, in your own home and the income is £4,250 or less you do not need to do a tax return.

Landlord Tax Returns for £99

apply for a tax rebate

4 comments

  1. DJ says:

    Hi, we have rented out our apartment for the first time and its in both our names including our bank accounts. How do we submit the tax return, is it halved or submitted jointly?

  2. B Stevens says:

    My husband and I own a rental property on a joint buy to let mortgage. However all the bank accounts for the properties are in my name so the income and expenditure is all in my name. Does my husband still need to complete a tax return?

    • TaxFix says:

      B Stevens: If your husband receiving income from the properties and needs to declare it, he will likely have to do so via a tax return.

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