Tax Glossary


White Arrow
Last updated on:
March 17, 2024

A landlord is an individual, company, or entity that owns and rents out real estate to tenants in exchange for rent. The role of a landlord encompasses not only collecting rent but also ensuring the property remains habitable and well-maintained throughout the tenancy.

Responsibilities of a Landlord

Landlords are bound by legal responsibilities to maintain their properties and ensure the safety and well-being of their tenants. Key responsibilities include:

  • Gas Safety: Ensuring gas installations and appliances are safely installed and maintained annually by a Gas Safe registered engineer.
  • Electrical Safety: Keeping the property's electrical system, including wiring and appliances, safe for tenants.
  • Fire Safety: Installing smoke detectors on every floor, providing carbon monoxide alarms in relevant rooms, maintaining clear escape routes, and ensuring all furnishings comply with fire safety standards.
  • Energy Performance: Acquiring an Energy Performance Certificate (EPC) for the property, which must meet a minimum rating of 'E' for new tenancies.
  • Right to Rent Checks: Verifying that tenants have the legal right to reside in the UK by reviewing and copying their immigration documents or passport.

Tax Obligations for Landlords

Landlords must navigate several tax responsibilities, including:

  • Stamp Duty: Paid upon purchasing the property.
  • Capital Gains Tax (CGT): Owed when selling the property, calculated on the profit made.
  • Inheritance Tax: Potentially due depending on the manner in which the property was acquired.
  • Income Tax: Paid on net rental income, which is the total rental revenue minus allowable expenses such as professional fees, mortgage interest, maintenance costs, and utility bills.

Landlords are required to report their income and expenses through a Self Assessment tax return. This process can be complex, but services like TaxScouts are available to simplify the filing online, ensuring landlords meet their tax obligations efficiently.

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

Arrange your free initial consultation today.

Book Free Consultation
UK's best rated accountant 2021
Rated Excellent
5 Stars
on Trustpilot