Landlords report rental income on the SA105 property pages of their Self Assessment tax return. You enter total rent received, claim allowable expenses, and separately report mortgage interest for the Section 24 tax credit. The return is due by 31 January following the tax year.
This guide walks you through completing the property income section step by step.
Do I Need to Report Rental Income?
You Must Report If:
| Situation | Action Required | |-----------|-----------------| | Rental income over £2,500 | File Self Assessment with SA105 | | Rental income over £1,000 and claiming expenses | File Self Assessment with SA105 | | Already filing Self Assessment for other reasons | Include property income on SA105 |
You May Not Need to Report If:
| Situation | Action | |-----------|--------| | Rental income under £1,000 | Property Allowance covers it—no reporting | | Rental income £1,000-£2,500 (not claiming expenses) | Can use Property Allowance—no SA105 |
Property Allowance: £1,000 tax-free allowance for small amounts of rental income. If you want to claim expenses instead, you must file SA105.
Before You Start
Gather these documents:
| Document | Purpose | |----------|---------| | Rental income records | Total rent received | | Expense receipts | Costs to deduct | | Mortgage statements | Interest for Section 24 | | Agent statements | If using a letting agent | | Property details | Addresses, ownership dates |
Completing Form SA105
Section 1: Property Income
Box 20: Total rents and other income from property
Enter the total rent received during the tax year (6 April – 5 April).
| Include | Don't Include | |---------|---------------| | Rent payments | Deposits held | | Airbnb/short-let income | Returned deposits | | Service charges passed to you | Capital receipts | | Insurance claim payouts | Personal use of property |
Example: Three properties with rent of £12,000, £9,600, and £14,400 = £36,000
Section 2: Property Expenses
Enter allowable expenses by category:
Box 21: Rent, rates, insurance, ground rents
| Expense | Amount | |---------|--------| | Ground rent | £xxx | | Service charges | £xxx | | Buildings insurance | £xxx | | Council tax (void periods) | £xxx |
Box 22: Property repairs and maintenance
| Expense | Amount | |---------|--------| | Repairs to structure | £xxx | | Decorating | £xxx | | Garden maintenance | £xxx | | Appliance repairs | £xxx |
Box 23: Finance costs
This is for mortgage interest and other finance costs. Enter the total—this feeds into the Section 24 tax credit calculation.
Box 24: Legal, management and other professional fees
| Expense | Amount | |---------|--------| | Letting agent fees | £xxx | | Accountant fees | £xxx | | Legal fees (tenancy) | £xxx |
Box 25: Costs of services provided
| Expense | Amount | |---------|--------| | Cleaning | £xxx | | Gardening services | £xxx | | Utilities (if landlord pays) | £xxx |
Box 26: Other allowable property expenses
| Expense | Amount | |---------|--------| | Travel to properties | £xxx | | Stationery, phone | £xxx | | Safety certificates | £xxx | | Advertising | £xxx |
Section 3: Calculating Profit
Box 27: Private use adjustment
If you used the property personally (e.g., holiday home), reduce expenses by the private use proportion.
Box 28: Balancing charge
For capital allowances on furnished holiday lets (if applicable).
Box 29: Capital allowances
Claim for qualifying equipment in furnished holiday lets.
Box 30: Landlord's energy saving allowance
Rarely used—for certain energy improvements to let property.
Box 31: Total expenses
Sum of boxes 21-26 (adjusted for private use).
Box 32: Tax adjustments
Any adjustments (rare for most landlords).
Box 33: Taxable profit
Total income (box 20) minus total expenses (box 31).
Section 4: Finance Costs (Section 24)
Box 44: Residential property finance costs
Re-enter the finance costs from box 23. HMRC uses this to calculate your 20% tax credit.
How Section 24 works:
- Your taxable profit (box 33) does NOT have finance costs deducted
- HMRC calculates your tax on this profit
- Then applies a 20% tax credit on finance costs (box 44)
Learn more: Section 24 Explained
Step-by-Step Example
Sarah: Two Buy-to-Let Properties
Property Income: | Property | Rent Received | |----------|---------------| | 14 Oak Lane | £12,000 | | Flat 3, The Heights | £9,600 | | Total (Box 20) | £21,600 |
Expenses: | Category | Amount | Box | |----------|--------|-----| | Ground rent + insurance | £650 | 21 | | Repairs and maintenance | £1,800 | 22 | | Mortgage interest | £8,000 | 23 | | Letting agent fees | £2,160 | 24 | | Cleaning | £480 | 25 | | Travel, safety certs | £350 | 26 | | Total expenses (non-finance) | £5,440 | 31 |
Calculation: | Item | Amount | |------|--------| | Total income | £21,600 | | Less expenses (excluding finance) | −£5,440 | | Taxable profit | £16,160 |
Section 24 credit:
- Finance costs (Box 44): £8,000
- Tax credit: 20% × £8,000 = £1,600
Sarah's tax:
- Income Tax on £16,160 at 40% = £6,464
- Less Section 24 credit = −£1,600
- Net property tax: £4,864
Multiple Properties
If you own several rental properties, they're treated as one property business:
| What to Combine | How | |-----------------|-----| | Income | Add all rental income together | | Expenses | Add all expenses together | | Finance costs | Add all mortgage interest together |
You complete one SA105 for all UK property income, not one per property.
Exception: Overseas property income goes on SA106, not SA105.
Joint Ownership
If you own property with someone else:
50/50 Ownership
Each owner reports half the income and expenses on their own tax return.
Unequal Ownership
By default, HMRC treats income as 50/50 for married couples/civil partners, regardless of ownership split.
To report based on actual ownership percentages:
- Complete Form 17 (Declaration of beneficial interests)
- Submit to HMRC
- Report income based on actual ownership
Example: You own 75%, spouse owns 25%.
- Without Form 17: Each reports 50%
- With Form 17: You report 75%, spouse reports 25%
Losses
If your property expenses exceed income:
| Loss Situation | Treatment | |----------------|-----------| | Loss this year | Carry forward to future years | | Loss from previous years | Offset against this year's profit |
Enter losses in Box 36 (or Box 37 for previous year losses used).
Note: Property losses can only offset property income, not other income.
Furnished Holiday Lets (FHL)
FHL properties have different rules and a separate section on SA105.
From April 2025: FHL tax advantages are being removed. FHL income will be reported the same as regular residential lets.
If you have a qualifying FHL for 2024/25, use boxes 34-38 on SA105.
Overseas Property
Overseas rental income goes on form SA106 (Foreign), not SA105.
- Report income converted to GBP
- Claim foreign tax credit if tax paid abroad
- UK tax rules apply to UK residents
Common Reporting Mistakes
1. Gross vs Net Rent
Report gross rent (what tenants pay), not what you receive after agent fees. Claim agent fees separately as an expense.
Wrong: Report £10,800 (after 10% agent fee) Right: Report £12,000 income, claim £1,200 agent fee as expense
2. Deducting Mortgage Interest
Don't subtract mortgage interest from income. Enter it separately in Box 23/44 for the Section 24 credit.
3. Capital vs Revenue
Don't claim capital improvements as expenses. Only repairs and maintenance are deductible from income.
4. Missing Expenses
Review the landlord expenses guide. Many landlords forget:
- Travel to properties
- Phone calls about property
- Safety certificates
5. Wrong Tax Year
The tax year runs 6 April to 5 April. Rent received on 1 April 2025 is in 2024/25. Rent received on 10 April 2025 is in 2025/26.
Filing Options
HMRC Online
- Log in to gov.uk/self-assessment-tax-returns
- Complete the main return (SA100)
- Select "Property income" to add SA105
- Complete property pages
- Review and submit
Tax Software
MTD-compatible software like TaxFolio:
- Enter property income and expenses throughout the year
- Software populates SA105 fields
- Review pre-filled return
- Submit directly to HMRC via API
Making Tax Digital
From April 2026 (property income over £50,000) or April 2027 (over £30,000), MTD for landlords requires:
- Digital record keeping
- Quarterly submissions
- Final declaration (replaces annual SA105)
MTD-compatible software will handle the property income reporting automatically.
Report Rental Income with TaxFolio
TaxFolio simplifies property income reporting:
- Property tracking — manage multiple properties
- Expense categorisation — matches SA105 boxes
- Section 24 calculation — mortgage interest handled correctly
- Bank connection — import rent and expenses automatically
- SA105 filing — submit directly to HMRC
- MTD-ready — quarterly submissions from 2026
- From £69.99/year — built for UK landlords
Start your free 30-day trial and file your property return with confidence.
Summary: SA105 Quick Reference
| Box | Description | |-----|-------------| | 20 | Total rental income | | 21 | Rent, rates, insurance, ground rent | | 22 | Repairs and maintenance | | 23 | Finance costs (mortgage interest) | | 24 | Agent fees, legal, accountancy | | 25 | Services (cleaning, gardening) | | 26 | Other allowable expenses | | 31 | Total expenses | | 33 | Taxable profit | | 44 | Finance costs for Section 24 credit |
Key steps:
- Gather income and expense records
- Complete SA105 as part of Self Assessment
- Enter mortgage interest separately for Section 24
- File by 31 January
- Pay tax owed by 31 January