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HMO Mortgages
What is Income Tax?
Definition: Income Tax is paid by landlords on rental profits and fees, in addition to income from other employment sources. Individual landlords pay income tax on rental profits, while limited companies pay corporation tax instead.
About Income Tax
Income tax applies to rental income from HMO properties, with landlords required to declare all rental income and pay tax on profits after allowable expenses. The tax treatment can be complex for HMO landlords.
For HMO landlords, allowable expenses include mortgage interest (subject to restrictions), property maintenance, management fees, and other property-related costs. Professional advice is often recommended.
Landlords must keep detailed records of all income and expenses and file annual tax returns. The tax treatment of HMO properties can differ from standard buy-to-let properties.
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Important: Rates shown are indicative and subject to status. Your home may be repossessed if you do not keep up repayments on your mortgage. Terms and conditions apply. For current rates and full details, please .