First steps
- Lender consent to let, or switch to a buy-to-let mortgage.
- Landlord insurance.
- In England: comply with the Renters' Rights Act rules, gas and electrical safety, an EPC, and deposit protection.
- Record the property's market value when letting started.
Income tax
Rent minus allowable expenses is taxed on top of your other income. From April 2027 it's taxed at 24% / 44% / 49%. Furniture you already owned can't be claimed, but like-for-like replacements can.
When you sell
Private Residence Relief exempts the share of the gain for the time you lived there, plus the final 9 months. The rest is taxed at 18% / 24% after the £3,000 exemption, and must be reported within 60 days. Lettings relief only applies if you lived there with your tenant.
Sources
- GOV.UK: Tax when you sell your home
- GOV.UK: Renting out your property, paying tax
- GOV.UK: Report and pay Capital Gains Tax on UK property
Sources last checked 9 November 2026. See all our sources and how we keep pages up to date.
This guide explains general rules for individual landlords in England, Wales and Northern Ireland. It isn't personal tax advice. Check GOV.UK or speak to a qualified adviser before you act.