Paying Tax on your Rental Income

Generally, any income that you receive from renting out property will be liable for income tax, so you must include it on your tax return. This income could be from renting out land or buildings, or it could be income you earn by having private boarders or flatmates living with you.

Rent in advance

If you receive rent in advance, it is taxable in the year in which you receive it. For example, if your tenant paid rent on 30 March 2006 which covers the following two weeks, you must still return this income in the income year 1 April 2005 to 31 March 2006 (if you have a standard 31 March balance date).

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