Final Declaration · 2026/27 guide
Pensions & retirement
ONLY£15A MONTHKeep pension receipts separate from rental income, and understand where private pension contributions and tax relief enter your annual review.
In developmentWho this guide is for
Retired landlords, sole traders drawing a pension and people contributing to a private pension alongside their business.
Covered in this guide: State Pension, private pensions and private pension contributions.
Rental receipts and pensions stay separate
Receiving a pension does not make it rental income. Keep State Pension and private pension records separate from rent and property expenses, even if they share a bank account. The taxable elements of pension income are considered alongside other income in the annual tax calculation.
Check gross pension income and deductions
Use pension provider statements to distinguish taxable income, any tax-free element and tax already deducted. The amount reaching your bank may be a net payment. Keep each provider’s records, rather than treating all pension withdrawals as either entirely taxable or entirely tax-free.
Claim eligible contribution relief only once
With relief at source, your provider normally adds basic-rate relief. You may be able to claim further relief on income taxed at a higher rate; Scottish rates differ. Contributions made through net pay or salary sacrifice work differently. Check how your scheme operates and the applicable limits before claiming additional relief.
Your questions, answered
Should I put my State Pension in property updates?
No. Keep it separate from your rental business. Pension income is reviewed as part of your personal annual tax position.
Does every pension contribution qualify for extra relief?
No. Eligibility depends on the contribution method, tax paid and relevant limits. Relief already received through payroll or the provider must be taken into account.
Can Avona complete my pension sections now?
These annual-return capabilities are in development. Before relying on Avona for a return containing pension income or contributions, check the current feature status and your full filing needs.
The other parts of your annual return
Employment & PAYE
A job alongside your business? Understand how employment pay, tax already deducted and benefits fit into your annual MTD tax return.
Explore the guide In developmentSavings & investments
Understand how bank interest and dividends fit alongside your business income, including allowances and overseas investment records.
Explore the guide Property quarterly support readyProperty & overseas income
Bring UK and overseas rental records into focus, while keeping foreign investment income and annual tax relief claims distinct.
Explore the guide In developmentCapital Gains Tax
Understand the difference between income and asset disposals, and why some property gains need action before your annual return.
Explore the guide In developmentAllowances & charges
Prepare the personal details behind student loan repayments, charitable giving, Marriage Allowance, Child Benefit charges and voluntary Class 2 National Insurance.
Explore the guideGet your records ready for the year ahead.
Use Avona for the quarterly features available now. If your annual return includes other income, gains or reliefs, check that the features you need are available before choosing your filing route.