Tax on property and rental income : Directgov - Money, tax and benefits. When you start renting out property, you must tell HM Revenue and Customs (HMRC) and you may have to pay tax.
If you don’t, you could be charged a penalty. Property you personally own You must report income from property rental of more than £2,500 a year on a Self Assessment tax return. If it’s less than £2,500 a year, call the Self Assessment Helpline and ask for form P810.