Where UK property is a source of rental or other income, the taxpayer is liable for self-assessment (i.e., must file a tax return) if their situation meets any of the following criteria:
- Total property income exceeds £1,000: This includes all UK rental income, receipts from land or property, furnished holiday lettings (FHL) in the UK or EEA (unless remittance basis applies), furnished rooms in your home, lease premiums, or reverse premiums. Income up to £1,000 qualifies for the property income allowance and is exempt from tax and reporting. If over £1,000, you must report it unless you qualify for an exemption (e.g., Rent a Room relief up to £7,500/£3,750 if joint).
- Claiming the property income allowance but income exceeds £1,000: You must file to claim the allowance (up to £1,000 total across all property businesses, including foreign). You cannot claim if income is from a connected party (e.g., relative or employer).
- Claiming Rent a Room relief where income exceeds £7,500 (£3,750 if joint): If letting furnished rooms in your home and income exceeds the threshold, you must file and either pay tax on the excess or calculate profit after expenses.
- Non-resident landlord status: Even if income is below thresholds, you must file if claiming back tax deducted under the non-resident landlord scheme.
- Claiming reliefs, allowances, or losses: This includes:
- Deducting allowable expenses or capital allowances (e.g., if expenses > turnover, to claim losses against future income).
- Foreign Tax Credit Relief on EEA FHL foreign tax.
- Relief for finance costs on residential properties.
- Carrying forward losses from prior years.
- Capital allowances (e.g., Annual Investment Allowance, Structures and Buildings Allowance).
- Period of grace election for FHL properties not meeting qualification days.
- Property business involves partnerships or joint ownership: If property is let jointly and you need to declare your share (or use Form 17 for unequal shares), or if income is from a partnership property business.
- Accounting period changes or transitional adjustments: If switching between cash basis and traditional accounting, requiring adjustments for transitional receipts/expenses.
- Participation in Managing Serious Defaulters (MSD) programme: Requires full reporting, including profit/loss accounts and balance sheets.
- Income from specific sources requiring separation: E.g., FHL must be separated for special rules (capital allowances, reliefs); EEA FHL if not on remittance basis.
- No expectation of future income but cessation in year: If all property income ceased and no future income expected, you may still need to file to confirm.
If you believe you do not need to file (e.g., income ≤ £1,000 or fully exempt under allowances), you must notify HMRC by 31 January 2026 to avoid penalties. Use the online checker at www.gov.uk/check-if-you-need-a-tax-return. Filing deadlines: Paper return by 31 October 2025; online by 31 January 2026.
Note: These criteria assume no other income sources (e.g., employment, self-employment). If other income exists, broader self-assessment rules apply. Property income from overseas (non-EEA FHL) goes in the ‘Foreign’ pages, but total property income (UK + foreign) determines allowance thresholds.
Information Required for Each Box in the Tax Return (UK Property Pages – SA105)
The UK property pages (SA105) are the specific section of the tax return for reporting UK property income. The boxes are divided into UK FHL (furnished holiday lettings) and other UK property income. You must complete relevant boxes based on your income type. If only UK property income triggers self-assessment, focus on these; copy figures to main return (e.g., TR3) as needed. All figures are in £ (pounds sterling), rounded to nearest pound; negative figures (losses) are entered without minus sign where specified.
Always include your full name and Unique Taxpayer Reference (UTR) at the top.
UK Property Details (Applies to All)
- Box 3: Put ‘X’ if any income is from property let jointly (e.g., with spouse/partner). Only report your share of income/expenses; use Form 17 if unequal shares.
- Box 4: Put ‘X’ if claiming Rent a Room relief and total rents ≤ £7,500 (£3,750 if joint). No need to complete rest if this is your only letting income.
Furnished Holiday Lettings (FHL) in UK or EEA
Complete if property qualifies (available 210+ days, let 105+ days as holiday accommodation).
- Box 5: Total income from all FHL (including services to tenants; gross if non-resident). Use cash basis receipts if applicable.
- Box 5.1: Amount of property income allowance claimed (≤ £1,000 total across all properties; cannot exceed income or claim expenses/allowances).
- Box 5.2: Put ‘X’ if using traditional accounting (not cash basis). Must match basis for other UK property.
- Box 6: Rent paid, repairs, insurance, costs of services (e.g., wages, rates, maintenance).
- Box 7: Loan interest and other financial costs (proportion for FHL; no capital repayments).
- Box 8: Legal, management, and professional fees (e.g., agent fees, lease renewal <50 years; exclude first letting >1 year).
- Box 9: Other allowable expenses (e.g., stationery, travel, foreign tax on EEA FHL unless claiming credit; total expenses if income <£90,000).
- Box 10: Private use adjustment (non-business portion of expenses in boxes 6-9).
- Box 11: Balancing charges (tax on difference if sale proceeds > pool value of assets).
- Box 11.1: Electric charge-point allowance (100% first-year for new/unused charge-points).
- Box 11.2: Zero-emission car allowance (100% first-year for new/unused electric/zero-emission cars; reduce for non-business use).
- Box 12: Other capital allowances (e.g., equipment/vehicles; exclude if claiming allowance or cash basis except cars).
- Box 13: Taxable profit for FHL (calculated via working sheet: income + adjustments + charges – expenses/allowances).
- Box 14: Loss brought forward used against this year’s FHL profits (≤ box 13; include non-FHL property losses).
- Box 15: Taxable profit for the year (box 13 minus box 14).
- Box 16: Loss from FHL (from working sheet if negative).
- Box 17: Total loss to carry forward (unused losses from this/prior years).
- Box 18: Put ‘X’ if business is in EEA (separate pages if both UK and EEA).
- Box 19: Put ‘X’ if making period of grace election (for properties qualifying in prior year but not this year).
Other UK Property Income (Non-FHL)
- Box 20: Total rents and other income (e.g., tenancy, leasing, tips on land, grants; exclude FHL; gross if non-resident).
- Box 20.1: Amount of property income allowance claimed (≤ £1,000 total; cannot claim expenses/allowances).
- Box 20.2: Put ‘X’ if using traditional accounting (not cash basis). Must match basis for FHL if applicable.
- Box 21: Tax taken off income in box 20 (non-resident landlords only).
- Box 22: Premiums for grant of lease (income portion for leases ≤50 years; from working sheet).
- Box 23: Reverse premiums and inducements (payments/benefits to take property interest).
- Box 24: Rent, rates, insurance, ground rents (e.g., business rates, contents insurance).
- Box 25: Property repairs and maintenance (e.g., painting, roof repairs, furniture fixes).
- Box 26: Non-residential property finance costs (full loan interest for non-residential; exclude residential – use box 44).
- Box 27: Legal, management, other professional fees (e.g., agent fees, eviction costs; exclude planning fees).
- Box 28: Costs of services provided (e.g., gardening, cleaning wages).
- Box 29: Other allowable expenses (e.g., stationery, travel, irrecoverable debts if not cash basis; total if income <£90,000).
- Box 30: Private use adjustment (non-business portion of boxes 24-29).
- Box 31: Balancing charges (as above).
- Box 32: Annual Investment Allowance (AIA; up to max for equipment, not cars/dwelling items).
- Box 33: Structures and Buildings Allowance (SBA; claim amount; record details in ‘Any other information’ if first claim).
- Box 33.1: Electric charge-point allowance (100% first-year).
- Box 33.2: Freeport/Investment Zones SBA (enhanced; record details in ‘Any other information’ if first claim).
- Box 34: Zero-emission goods vehicle allowance (100% first-year; reduce for non-business use).
- Box 34.1: Zero-emission car allowance (100% first-year; reduce for non-business use).
- Box 35: All other capital allowances (e.g., 18%/6% WDA; fixtures via s198 election).
- Box 36: Costs of replacing domestic items (residential non-FHL; replacement only, not initial; limit if improvement).
- Box 37: Rent a Room exempt amount (£7,500 or £3,750 if joint; cannot claim expenses/allowances).
- Box 38: Taxable profit (from working sheet: income + adjustments + charges – expenses/allowances/exemptions).
- Box 39: Loss brought forward used against this year’s profits (≤ box 38; from prior box 43).
- Box 41: Loss from property (from working sheet if negative; can offset against FHL profits).
- Box 42: Loss set off against 2024-25 total income (limited to agricultural expenses/capital allowances; cap at £50,000 or 25% adjusted income).
- Box 43: Loss to carry forward (unused from box 41/prior years).
- Box 44: Residential property finance costs (loan interest/alternative finance; used for tax reduction).
- Box 45: Unused residential finance costs brought forward (from prior years).
If property income is from a partnership, use ‘Partnership (full)’ pages instead. For tax calculation (SA110), property income feeds into non-savings income (e.g., A28/A29 for profits, M1/M2 for finance costs relief), but these are not direct tax return boxes for property.
Checklist of Documents, Evidence, Receipts, Dates, Invoices, and Forms Needed
To submit a tax return for UK property income, maintain records for 5-6 years (22 months if no enquiry). Here’s a comprehensive checklist based on SA105 and SA110 notes:
- Income Records:
- Tenancy/leasing agreements (dates, terms, premiums paid/received).
- Rent receipts/invoices (dates, amounts received, payer details).
- Bank statements showing rental deposits (including services, grants, tips, reverse premiums).
- Records of cash receipts if cash basis (dates, amounts).
- Non-resident landlord scheme statements (tax deducted).
- Expense Records:
- Invoices/receipts for repairs, maintenance, insurance, rates, ground rents (dates, amounts, suppliers).
- Loan statements/invoices for interest/finance costs (dates, amounts; separate residential/non-residential).
- Professional fees invoices (e.g., agents, legal; dates, descriptions).
- Service cost receipts (e.g., wages, gardening; payroll if employees).
- Travel expense logs (mileage, dates, purpose; flat rate if applicable).
- Other expense receipts (e.g., stationery, phone bills apportioned for business use).
- Allowance/Relief Evidence:
- Purchase invoices for capital items (e.g., charge-points, zero-emission vehicles; dates, costs, proof of new/unused).
- SBA/Freeport details (construction contracts, first use dates, expenditure amounts, locations).
- Replacement domestic items receipts (old/new costs, proof no improvement).
- Loss records from prior years (prior tax returns, calculations).
- Agricultural expense details if claiming offset.
- Adjustments and Elections:
- Private use logs (dates/periods of non-business use).
- Balancing event records (sale proceeds, asset values, dates).
- Transitional adjustment calculations (if changing basis; receipts/expenses affected).
- Section 198 election (joint agreement on fixture values; within 2 years of transfer).
- Period of grace election details (prior year qualification proof).
- Accounts and Computations:
- Profit/loss account, balance sheet (mandatory if MSD; otherwise recommended).
- Working sheets for profits/losses, premiums, adjustments (as in notes).
- Accounting period details (if not 6 Apr-5 Apr; apportionment calculations).
- Forms and Declarations:
- Form 17 (Declaration of beneficial interests in joint property; if unequal shares).
- Tax return forms (SA105 for property, SA110 if calculating tax yourself).
- ‘Any other information’ notes (e.g., SBA first claim details, unrecorded figures if MSD).
- Other Evidence:
- FHL qualification logs (availability/letting days, bookings, dates).
- Rent a Room records (income dates, proof of furnished rooms in home).
- Foreign tax receipts (EEA FHL; if claiming credit).
- MSD confirmation (if applicable; additional reporting).
Keep digital/physical copies; HMRC may request during enquiries. If no records for figures, declare in return. Consult adviser if complex (e.g., cash basis switch)