Property Accounting

Anyone earning income from letting property must declare it including individuals, joint owners, and property partnerships. Companies that hold property include this income within their Corporation Tax Return (CT600) instead.

The SA105 is the section of your Self Assessment used to report income and expenses from property letting. It covers residential, commercial, and furnished holiday let (FHL) properties.

If you let property in your own name, you’ll report income and expenses through Self Assessment using the SA105 form. You can claim expenses that are wholly and exclusively for letting the property, such as:

• Letting agent and management fees

• Repairs and maintenance (not capital improvements)

• Insurance, utilities, and council tax

• Professional and accountancy fees

• Replacement of domestic items (like furniture or appliances)

You can’t deduct full mortgage interest anymore — instead, you receive a 20% tax credit for finance costs under HMRC’s Section 24 rules.

If your property is held in a limited company, expenses are claimed through the company’s Corporation Tax Return (CT600) instead of an SA105. You can claim the same types of costs as an individual landlord but with one key advantage:

• Companies can usually deduct the full cost of mortgage interest and finance charges, since Section 24 restrictions don’t apply to company structures.

This makes limited companies more flexible for landlords with multiple properties or higher borrowing costs.

FHLs include short-term rental properties such as Airbnb units, holiday cottages, or serviced apartments that are available for rent for most of the year. If your property meets HMRC’s FHL rules — including minimum availability and letting days — it may qualify for additional tax benefits such as capital allowances and Business Asset Disposal Relief when sold.

Each owner must declare their share of income and expenses in proportion to ownership. By default, married couples split income 50/50 unless they have filed a Form 17 with HMRC declaring a different split.

When you sell a residential property, you may have to pay CGT on the profit. Most UK residential disposals must be reported to HMRC within 60 days of completion using the CGT property disposal submission. Reliefs such as Private Residence Relief, Lettings Relief, or Business Asset Disposal Relief may reduce the tax due.

If you already report property income through Self Assessment, the CGT disposal can also be included within your annual return, but if the property sale has already been reported through the 60-day CGT process, it must still be reflected in your year-end SA100 to reconcile the totals.

Non-resident landlords must register under the Non-Resident Landlord Scheme (NRLS) and declare all UK property income to HMRC. CGT also applies to non-UK residents on UK property sales.

Yes. Property losses must be declared to HMRC and can usually be carried forward to offset against future rental profits from the same property business.