Living in Türkiye: how much UK tax
will I pay on rent from my London home?

How to work out rental profit

This guide covers an individual living in Türkiye, non-resident for UK tax purposes, who owns the residential property personally. Companies are taxed differently. Income Tax starts with rental income less allowable expenses to arrive at rental profit. (F3)

Letting agent fees, buildings and contents insurance, maintenance and repairs can qualify where they relate to the letting business. The purchase price and improvements beyond repairs are not day-to-day deductions. Keep separate records of rent and expenses. (F3)

The property allowance is up to £1,000 a year. If eligible, you can choose it instead of actual expenses; you cannot claim both. You cannot use it if you claim the residential finance cost tax reduction described below. Exceptions also include rent from your employer or a company you control; check HMRC’s conditions before choosing. (F4)

Mortgage interest: Section 24

An individual landlord cannot deduct residential mortgage interest from rental profit. The finance cost restriction known as Section 24 instead gives a basic rate tax reduction for eligible interest and finance costs. The rate for 2026–27 is 20%. (F2, F3, F5, F6)

For one property business, the reduction is based on the lowest of: eligible finance costs plus unused amounts brought forward; property profits after brought-forward losses; and adjusted total income above the Personal Allowance, after the relevant losses and reliefs and excluding savings and dividends. You therefore cannot assume that you will recover 20% of every pound of interest paid. (F5, F6)

The reduction cannot itself create a tax refund. Finance costs left unused because of the profit or adjusted total income limit can be carried forward. Ask your tax adviser to calculate separate businesses separately where relevant. (F5, F6)

The £12,570 Personal Allowance for people abroad

The standard Personal Allowance for 2026–27 is £12,570. Living abroad does not automatically give everyone this allowance. GOV.UK lists British citizens, citizens of European Economic Area (EEA) countries and people who worked for the UK government during that tax year. Others may qualify under the terms of the double taxation agreement with their country of residence. A treaty’s existence alone is insufficient. (F1, F7)

HMRC expressly lists Turkish nationals who are also tax resident in Türkiye as eligible to claim UK personal allowances. INTM334580 includes Turkey in the category requiring both nationality and residence. DT1957 points claims under a treaty’s non-discrimination article to HMRC’s treaty digest. Living in Türkiye alone, or Turkish nationality alone, does not establish both conditions for this treaty route. (F8, F9)

Read Article 24’s nationality-based non-discrimination rule together with its exception concerning personal or family circumstances. Our conclusion relies on HMRC’s express country conditions alongside the treaty, rather than an inference from the treaty text alone. Ask HMRC if you have another nationality, dual residence or different circumstances. (F8, F9, F10)

The UK–Türkiye double taxation agreement is in force; consult your accountant in Türkiye about the Turkish side. (F10)

You must claim the allowance even if you are eligible. If filing Self Assessment, follow the SA109 notes for the relevant year; GOV.UK also describes the R43 claim route for people abroad. Confirm the appropriate route with your adviser when preparing your return. (F7, F9, F13)

The current SA109 notes require you to retain a certificate of tax residence for the claim period and, where relevant, evidence of nationality. Prepare these with your accountant. (F17)

Income Tax bands for 2026–27

Tax year: 6 April 2026 – 5 April 2027. This table gives the England bands for taxable income remaining after any Personal Allowance you qualify for. Each rate applies only within its band; other taxable income also affects which bands your rent reaches. (F1, F2)

With the full £12,570 allowance and no other adjustments, the first £50,270 of income consists of the £12,570 allowance and £37,700 basic rate band. If you do not qualify, do not deduct £12,570. Scottish taxpayers have different bands; this table does not set out their separate schedule. (F1, F2)

The allowance tapers above £100,000. For every £2 of adjusted net income above £100,000, it falls by £1, reaching zero at £125,140 or more. This measure is not simply gross rent. Interest disallowed under the finance cost restriction does not reduce rental profit; confirm your overall income calculation with your adviser. (F1, F6)

Example: £24,000 annual rent

This is arithmetic only, not a rent or expense forecast. Assume an individual with one personally owned rental home who qualifies for and claims the full Personal Allowance, with no other income, past losses or finance costs brought forward. Annual rent is £24,000, allowable running costs £4,000 and eligible mortgage interest £6,000. The property allowance is not claimed. (F1, F4, F5)

£286 is the annual Income Tax under these assumptions. Tax already deducted or paid, and any payments on account, separately affect the amount still payable to HMRC. Cash after interest and taxable rental profit are different figures. The rates and relief method come from the sources; rent and expenses are illustrative inputs. (F1, F2, F5)

Compare your own rent and running costs in the rental income and expenses calculator. It does not calculate personal Income Tax, and this example does not replace your personal tax calculation.

Self Assessment registration and SA109

Report UK rent through Self Assessment while living abroad. Check registration if this is your first return: GOV.UK says to register by 5 October following the tax year in which you received rental income. (F3, F11, F12)

Residence details go on SA109 supplementary pages and property income on SA105. HMRC’s standard online filing service does not support SA109 reporting for non-residents. Use post, commercial software supporting SA109, or a tax professional; the postal deadline is 31 October. Check the relevant year’s forms and current deadline on HMRC’s page. (F11, F12, F13)

As checked on 17 October 2026, the latest published SA109 form is labelled “2026” but covers 2025–26. Use the correct year’s form and notes when preparing the 2026–27 return. Give your adviser the nationality and residence information needed for a Personal Allowance claim. (F13)

Making Tax Digital: thresholds and landlords abroad

Making Tax Digital for Income Tax (MTD) requires individuals in scope to keep digital records, send quarterly updates and submit an annual return through compatible software. Its threshold uses qualifying income before expenses, rather than rental profit. (F14, F15, F16)

These thresholds mean “over”; an amount exactly equal to the threshold is insufficient by itself. For a non-UK tax resident, qualifying income includes UK property income and self-employment income declared on the UK Self Assessment return. Employment income, pensions and dividends do not count towards this threshold. (F14, F15)

There is a transitional SA109 exemption for 2026–27. If your 2024–25 return included SA109, you are automatically exempt from MTD for 2026–27 without contacting HMRC. If it did not, but you reasonably expect to include SA109 in your 2025–26 or 2026–27 return, you must apply for the exemption. (F16)

This is not a permanent exemption for everyone living abroad. If qualifying income in 2025–26 exceeds £30,000, you start MTD on 6 April 2027 unless another exemption applies. Also check the £20,000 threshold for the following intake. An exemption does not remove the annual Self Assessment obligation. (F14, F16)

There is also an automatic MTD exemption for a tax year if you do not have a National Insurance number before that year starts. Check HMRC’s guidance if you obtain one later and for other exemptions. (F16)

Where NRLS, purchase and sale taxes are covered

For rent withholding and the NRL application, read our NRLS guide for landlords living in Türkiye. This page covers the annual Income Tax calculation; the withholding procedure is explained there.

Stamp Duty Land Tax (SDLT) on purchase and Capital Gains Tax (CGT) on sale are separate subjects. Their bands and transaction deadlines are covered in those guides.