Quick answer
No. For MTD for Income Tax, all your UK rental properties form one UK property business, so you send one quarterly update covering all of them. Overseas properties form a separate foreign property business with its own updates. Adding another UK property doesn’t create a new income source.
Key facts
All UK lets = one UK property business
All overseas lets = one foreign property business
One quarterly update per business, not per property
A new UK property joins your existing property business
How HMRC groups your properties
HMRC treats all the UK property you let as a single UK property business, and all your non-UK property as a single foreign property business. Each business gets its own quarterly updates.
Example
A landlord with three flats in Leeds and a villa in Spain sends two quarterly updates each quarter: one for the UK property business covering all three flats, and one for the foreign property business.
Tracking each property
HMRC only needs the totals for each property business. Many landlords still track income and costs per property in their software so they can see which lets are profitable. That’s for your own use.
Buying another property
A new UK property becomes part of your existing UK property business, so there’s nothing new to register. A first overseas property is a new income source. See starting a new business or income source.
Common questions
Do jointly owned properties go in the same update?
Your share of jointly let property is part of your property business, and there are simplified record-keeping rules for it. See MTD and jointly owned property.