If you are reporting for multiple UK rental properties, MTD for Income Tax considers them as a single UK property business.
You do not have to submit separate quarterly updates for each property.
Recording Split Ownership Property Under MTD for Income Tax
If you jointly own a UK rental property, there are two accepted methods to keep your digital records, depending on how the property is managed and the complexity of the ownership split.
Option 1 – Single Gross Record You may maintain:
- 100% of the rental income
- 100% of the expenses
- The agreed ownership percentages
Capium will then automatically distribute income and expenses based on each owner’s share prior to submission.
Consequently, each owner’s quarterly update will include only their share, even though the underlying ledger displays the complete property figures.
✅ Option 2 – Each Owner Records Their Share Only Alternatively, each owner can record just their share of:
- Gross rental income
- Allowable expenses
In this scenario, the figures in each individual's digital records already represent their ownership percentage, eliminating the need for further allocation before submission. We suggest this method if ownership percentages are more intricate.
Additional information regarding record keeping is available here https://www.gov.uk/government/publications/update-notice-for-making-tax-digital-for-income-tax/making-tax-digital-for-income-tax-update-notice.
You can utilise Capium bookkeeping or 365 for managing the records of the UK properties.
In summary:
Joint owners should report their share only to HMRC in the quarterly update.
Digital records must detail income and expenses by date and category.
Multiple UK properties equal one consolidated property business.