UK & Overseas Property Business: Tax Rules You Need to Know

I Hate Numbers: Simplifying Tax and Accounting

Property taxes can be confusing—especially when dealing with both UK and overseas rentals. In this episode of the I Hate Numbers podcast, Mahmood simplifies the rules for landlords, including how to report income, claim expenses, and avoid common mistakes that cost money.

Main Topics & Discussion

UK Property Income

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• Tax applies to rental income from UK property, regardless of where you live.
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• Includes residential, commercial, furnished holiday lets, and even part of your home if rented.
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• Must declare gross rents, allowable expenses, and profit on your tax return.
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Overseas Property Income

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• UK residents pay tax on worldwide rental income.
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• Double Taxation Relief may apply if tax is also paid abroad.
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• Exchange rates must be considered when reporting foreign income.
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Allowable Expenses

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• Deductible costs include repairs, letting agent fees, insurance, and utilities (if landlord-paid).
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• Mortgage interest relief is restricted and subject to tax credit rules.
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• Improvement costs are capital, not revenue, so not immediately deductible.
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Property Ownership Structures

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• Rental profits are taxed on the legal owner(s).
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• Joint ownership splits income for tax purposes.
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• Using a company for property may offer tax advantages but adds complexity.
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Common Mistakes to Avoid

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• Forgetting to declare overseas rental income.
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• Mixing personal and rental expenses without evidence.
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• Ignoring currency conversion rules.
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• Missing out on capital allowances or reliefs for certain property types.
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Final Thoughts

Tax on property income doesn’t have to be overwhelming. Understand what’s taxable, keep good records, and use reliefs wisely. Whether your property is in the UK or abroad, planning and compliance are key to keeping more of your money.

Links Mentioned in This Episode

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• 🔗 Book a Call
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Episode Timecodes

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• [00:00:00] – Intro: Why property tax rules matter
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• [00:01:10] – UK property income explained
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• [00:03:00] – Overseas property income & tax relief
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• [00:05:15] – Allowable expenses landlords can claim
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• [00:07:00] – Ownership structures & tax implications
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• [00:09:00] – Common mistakes to avoid
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• [00:10:30] – Final thoughts & next steps
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Host & Show Info

Host Name: Mahmood Reza

About the Host: Mahmood is an accountant, tax advisor, and founder of I Hate Numbers. With decades of experience helping landlords and businesses, he makes tax easier so you can focus on growth.

Podcast Website:https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/🎧 Listen & Subscribe to I Hate Numbers

Stay ahead on property tax and business finance. Listen on Apple Podcasts, share this episode, and subscribe for weekly insights. Plan it. Do it. Profit.

Additional Links

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• 🔗 I Hate Numbers YouTube Channel
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• 🔗 Buy the I Hate Numbers Book
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