Guide · Property
Buying, downsizing and rental property
Moving releases money only after the mortgage, moving costs and the price of your next home.
Your main home is usually free of Capital Gains Tax when sold. Second homes and rental property may not be.
Rental income is taxable and comes with costs and empty periods.
Exploring a move with your own figures
When you explore a move from your own plan, the move starts empty. FLYNQD never fills it with example figures, so every amount you see is one you entered or one taken from your saved property and mortgage.
Any example move FLYNQD shows you uses fictional figures and is clearly marked as an example. It is never copied into your plan.
How rental profit is taxed
Tax is worked out on profit: rent received, less allowable running costs. Mortgage capital repayments are never a cost. For homes you let out, mortgage interest isn’t deducted either; instead you get a tax reduction worth the basic rate on the lowest of your interest, your rental profit, and your income above the Personal Allowance. Any interest that doesn’t get relief carries forward to the next year.
All your UK lets are added together, so a loss on one property reduces the profit on another, and the £1,000 property allowance applies once. A loss left over can only be used against future rental profit.
From April 2027, rental profit in England and Northern Ireland has its own rates: 22%, 42% and 47%. Relief on mortgage interest rises to 22% to match. The Senedd can now set separate Welsh property rates from 2027/28, but hasn’t set them yet, so FLYNQD doesn’t estimate property tax for Welsh taxpayers from 2027/28.
Where the rules are supported, your Tax estimate includes rental profit alongside your pay, pension, savings interest and dividends, and shows each step: income by type, allowances, tax before reliefs, the mortgage interest reduction and the total. It’s only used when every figure it needs is known. If anything is missing or not supported, such as Scottish rates or an overseas let, the estimate stays marked partial and tells you what’s left out. If you own a property with someone else, FLYNQD asks how the rent is split for tax rather than assume it follows ownership.
Explore in your plan
Related guides
Sources
- GOV.UK: Tax when you sell your home(opens in a new tab)
- GOV.UK: Capital Gains Tax(opens in a new tab)
These sources haven’t had a dated review recorded for this guide yet. Rules can change, so check the linked pages.
FLYNQD provides planning illustrations and general information, not personalised financial advice. Forecasts depend on the figures and assumptions used.