People have rental properties for many different reasons:
- Often it is an investment choice.
- Some have moved and couldn’t sell their original property so decide to rent rather than reduce their resale price.
- Or for others, they can’t afford to live in their house any more so move out permanently / temporarily until their financial situation improves.
Below is a reference guide to how rental income taxes work in the UK with step by step examples. We have some top tips on reducing tax on rental income. Plus national statistics for typical rental costs per region and type of property which you may find useful.