Yes, as well as the extra stamp duty you must pay which is around 3% more than when buying a residential property, you also have to declare the income that you make from your rental profits and pay tax on this profit as a part of your yearly income. This income is normally declared on your self-assessment when you are doing your yearly self-assessment tax returns under “Income from land or property” section. Also, when you sell the property, you will be liable to pay capital gains tax on the profits you’ve made from the property minus any allowable expenses and costs.