UK Property Income
This guide explains how to set up and manage a UK property business in My Tax Digital, including adjustable summaries and annual adjustments & allowances.
1. The UK Property Income Hub
The UK Property Income screen is the main management hub for a UK property business. From here you can navigate to all the submission areas for the business.
| Card | Description |
|---|---|
| Obligations | View open and fulfilled income & expense submission periods. |
| Income & Expenses | Retrieve and review previously submitted cumulative income and expense figures. |
| Adjust Income & Expenses | Submit or update an Adjustable Summary — a HMRC-required end-of-year adjustment to your cumulative figures. |
| Adjustments & Allowances | Submit annual adjustments and capital allowances. |
The hub also shows the current Reporting period and Submission mode (Accounting or Bridging).
2. Adding a UK Property Business
Before you can submit any UK property income, you must first add the property business and configure how you will submit figures.
2.1 Submission Mode
Choose how you will provide your income and expense figures to HMRC.
| Option | Description |
|---|---|
| Accounting | Figures are calculated automatically from your transactions recorded in My Tax Digital. |
| Bridging | You import figures from an external source using a spreadsheet. |
2.2 Adding a Business
Provide the basic details for the property business.
| Field | Description |
|---|---|
| Business name | A name for the property business (e.g. "UK Property"). |
| Business type | Select UK Property (Private Landlord) for residential lettings. |
| Industry | Select the appropriate industry category (e.g. Real estate activities). |
| Is VAT registered? | Indicate whether the business is VAT registered. |
| Email / Phone | Optional contact details for the business. |
| Address | Search for the business address by postcode or address. |
2.3 Linked Business & Submission Details
After adding the business, complete the submission configuration.
| Field | Description |
|---|---|
| Business | The property business linked to this income source. Click + New to add a new business. |
| Ownership percentage | If this individual is the sole owner, enter 100%. For joint owners, enter the percentage of income attributable to this individual for tax purposes. |
| VAT Treatment | Choose whether to report income and expenses as Net (excluding VAT) or Gross (including VAT). The default is set automatically based on the VAT scheme and business type. |
| Accounting period — Period type | Select Standard (6 April to 5 July cycle) or Calendar (1 April to 30 June cycle). This can only be changed before any submissions have been made for the year. |
3. Adjustable Summaries
An Adjustable Summary (BSAS) allows you to adjust the cumulative income and expense figures already submitted for a period. It is required before your final tax calculation can be performed.
3.1 Viewing an Adjustable Summary
The view screen shows a read-only summary of the adjusted figures.
| Field | Description | SA105 |
|---|---|---|
| Taxable profit | The final taxable profit figure reported to HMRC. | Box 40 |
| Total deductions | The total of all deductions applied (allowances, losses b/f etc.). | - |
| Total additions | The total of all additions to net profit (balancing charges etc.). | - |
| Net profit | Net profit after income and expenses but before adjustments. | Box 38 |
| Total expenses | The total of all allowable expenses. | Boxes 24–29 |
| Total income | The total income from all property sources. | Box 20 |
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3.2 Updating an Adjustable Summary
When updating in Bridging mode, provide the adjusted figures directly.
First, indicate whether adjustments are required (Yes/No), then provide the following figures:
Income
| Field | Description | SA105 |
|---|---|---|
| Total rents received | Total rental income received from all properties. | Box 20 |
| Premiums of lease grant | Taxable portion of any premiums received for granting a lease. | Box 22 |
| Reverse premiums | Payments received from a landlord to induce you to take on a lease. | Box 23 |
| Other property income | Any other income from the property business not covered above. | Box 20 |
| Financial costs | Finance costs such as mortgage interest (non-residential). | Box 26 |
Expenses
Choose Consolidated (single figure) or Granular (individual categories). Granular categories include: Premises running costs, Repairs and maintenance, Financial costs, Professional fees, Cost of services, Residential financial cost, Travel costs, and Other.
4. Adjustments & Allowances
The Adjustments & Allowances screen is where you record annual capital allowances and property-specific adjustments. This corresponds to the adjustments section of your SA105 (UK Property) supplementary page.
4.1 Viewing Adjustments & Allowances
The view screen shows currently submitted figures. It also includes two property-specific questions:
| Field | Description |
|---|---|
| Are you a non-resident landlord? | Select Yes if you are a non-UK resident receiving UK rental income. |
| Is this property jointly let? | Select Yes if the property is owned and let jointly with another person. |
The following read-only adjustment and allowance figures are also shown:
| Field | Description | SA105 |
|---|---|---|
| Private use adjustment | Reduction for any element of private use of the property. | Box 30 |
| Balancing charge | Charge arising on the disposal of a capital asset previously claimed against. | Box 31 |
| Business premises renovation allowance balancing charges | Balancing charge specific to the Business Premises Renovation Allowance. | Box 31 |
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4.2 Updating Adjustments & Allowances
Allowances
| Field | Description | SA105 |
|---|---|---|
| Property income allowance | The £1,000 property income allowance, if claimed instead of actual expenses. | Box 20.1 |
| Annual investment allowance | 100% first-year allowance on qualifying plant and machinery. | Box 32 |
| Structures & Buildings Allowance | Annual SBA on qualifying commercial building expenditure. | Box 33 |
| Electric charge-point allowance | 100% first-year allowance on electric vehicle charging equipment. | Box 33.1 |
| Zero-emission car allowance | 100% first-year allowance on new zero-emission cars. | Box 34.1 |
| Other capital allowances | Any other capital allowances not covered by the categories above. | Box 35 |
| Residential finance costs | Finance costs for residential lettings subject to the finance cost restriction rules. | Box 44 |
Section 24 — mortgage interest: Enter the full mortgage interest amount here. You do not need to apply the finance cost restriction yourself — HMRC applies the Section 24 restriction automatically when processing the tax calculation. Non-residential finance costs (e.g. commercial property mortgages) should be entered under Financial costs in the Adjustable Summary instead.
