Joint Ownership & Partnerships
Many UK rental properties are co-owned. MTD for Income Tax has specific rules about how each owner reports their share — and some structures are excluded from MTD entirely.
Jointly Owned Properties
When two or more individuals jointly own a rental property, each owner is treated as running their own separate property business for tax purposes. Each person reports only their share of the rental income and expenses, based on their ownership percentage.
Under MTD, each joint owner files their own quarterly updates independently. HMRC does not combine the returns — each person's UK property business is assessed separately against the qualifying income threshold.
The threshold applies per person
Each joint owner must independently exceed the qualifying income threshold (£50,000 in 2024-25, mandated from 6 April 2026; £30,000 in 2025-26, mandated from 6 April 2027) based on their share alone. A 50/50 split on a property generating £90,000 rent in 2024-25 means each owner reported £45,000 — neither would be mandated from 6 April 2026.
Married couples and civil partners living together: 50:50 by default, whatever the actual split
The "report your own share" rule above assumes the owners have chosen their own beneficial shares — true for co-owners such as siblings or business partners. For a married couple or civil partnership who live together, HMRC instead treats jointly held property income as owned equally, 50:50, even if the legal ownership is unequal (e.g. 80:20) — source: HMRC TSEM9814.
"Living together" has its own meaning here, and it excludes a couple who are separated under a court order, by deed of separation, or in fact in circumstances likely to be permanent. A separated couple is not subject to the 50:50 rule at all — each reports their own actual entitlement, and cannot make a form 17 declaration — source: HMRC TSEM9810.
For a couple living together, 50:50 can only be displaced by jointly declaring the couple's actual, unequal beneficial shares to HMRC on form 17. This is only available where the property is held as tenants in common with genuinely unequal shares, not as beneficial joint tenants — source: HMRC TSEM9850. Without a valid form 17 on file, a spouse or civil partner who reports by their unequal legal share is reporting the wrong figure.
Form 17 is not retrospective. It must reach HMRC within 60 days of the date of the declaration, and HMRC has no power to extend this — source: HMRC TSEM9862.
A jointly let property may report income only each quarter
For a jointly let property, each quarterly update may choose to include income and expenses, as for a sole-owned property, or income only — with expenses instead kept as one digital record per expense category for the whole tax year and declared at the Final Declaration. This is a choice, not an obligation, and it does not remove the requirement to declare expenses — it changes when and how often. Source: HMRC update notice, §3.
Worked Examples
How the income split affects each co-owner's reporting obligation.
Example 1 — 50/50 ownership split
In 2024-25, Property A generated £80,000 gross rent and Property B generated £30,000. Both owned equally by Alex and Blake, unmarried co-owners with a 50:50 legal share.
Example 2 — 60/40 ownership split
One property generating £90,000 gross rent in 2024-25, and the same again in 2025-26. Casey owns 60%, Dana owns 40% — unmarried co-owners reporting their actual legal shares. (A married couple or civil partnership living together in this position would each report 50:50 unless they had filed a valid form 17 — see above.)
Dana's 2024-25 share of £36,000 falls below £50,000, so she is not mandated from 6 April 2026. Her 2025-26 share is above £30,000, so she is mandated from 6 April 2027. Both owners still file independently — there is no joint MTD return.
All UK Properties — One Business
HMRC treats all of your UK rental properties (including your share of jointly owned properties) as a single UK property business. You do not file separate MTD returns for each property — instead, you aggregate income and expenses across your entire portfolio into one set of quarterly updates.
This means losses from one property can offset profits from another within your UK property business, and you only need one MTD-compatible software account regardless of how many properties you own.
Who is Excluded from MTD ITSA?
Not all property ownership structures fall within MTD for Income Tax. Two common structures are currently excluded.
Partnerships
General partnerships that own rental property are currently excluded from MTD for Income Tax Self Assessment. HMRC has confirmed partnerships will be brought into MTD in a future phase, but no implementation date has been set.
If you own rental property through a partnership, you still file Partnership Tax Returns (SA800) under the current rules and are not required to adopt MTD ITSA at this time. Monitor HMRC announcements for future changes.
Limited Companies
Limited company landlords are not within the scope of MTD ITSA at all. Companies pay Corporation Tax rather than Income Tax. HMRC previously piloted a separate Making Tax Digital for Corporation Tax regime, but shelved those plans — there is no mandated timeline for MTD to apply to Corporation Tax.
If your rental properties are held in a limited company, MTD ITSA does not apply regardless of the rental income level. You continue to file annual Company Tax Returns with Companies House and HMRC.
Quick Reference
| Structure | MTD ITSA applies? | How income is reported |
|---|---|---|
| Individual landlord (sole owner) | Yes — if above threshold | Full rental income in own MTD return |
| Joint ownership (tenants in common or joint tenants) | Yes — each owner independently, if above threshold | Each owner reports their ownership share |
| General partnership | Not yet — future phase (no date confirmed) | Partnership Tax Return (SA800) for now |
| Limited company | No — Corporation Tax, not Income Tax | Annual Company Tax Return |