You have a property rental business for tax purposes when you’ve acquired a property and this is available for letting.
You will need to declare your property rental profits, income less qualifying expenses, to HMRC.
From 6 April 2017, the property allowance means that individuals receiving income of £1,000 or less from property rental do not need to report this to HMRC.
If your property income is less than £2,500 then there is no need to register for self-assessment, but you should contact HMRC to inform them of the income and arrange for tax to be collected. .
If your property income is £10,000 or more, or if your profit (income less expenses) from the rental property is £2,500 or more, you must report your property business on a self-assessment tax return. Register for self-assessment by 5 October following the tax year end.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.