Tax on letting home?
Tax on letting home?
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Discussion

gra001

Original Poster:

840 posts

257 months

Sunday 15th July 2012
quotequote all
House up for sale but market seems very slow. Now considering letting so I can spend long periods abroad (fed up with the UK!!) and would appreciate advice on the state of play regarding tax on that income...thanks.

Edited by gra001 on Sunday 15th July 13:59

seaninog

513 posts

219 months

Sunday 15th July 2012
quotequote all
It's taxed as Rental Income at your marginal rate.

Of course if you move overseas and start living in another tax jurisdiction things may change depending on where you are.

Kudos

2,674 posts

204 months

Sunday 15th July 2012
quotequote all
seaninog said:
It's taxed as Rental Income at your marginal rate.

Of course if you move overseas and start living in another tax jurisdiction things may change depending on where you are.
Minus any allowances e.g. Interest on mortgage etc

Eric Mc

125,757 posts

295 months

Sunday 15th July 2012
quotequote all
Kudos said:
seaninog said:
It's taxed as Rental Income at your marginal rate.

Of course if you move overseas and start living in another tax jurisdiction things may change depending on where you are.
Minus any allowances e.g. Interest on mortgage etc
Stricly speaking they are not usually referred to as "allowances". They are really "rental costs" which would consist of -

mortgage interest
insurances
repairs paid for by the landlord
maintenance charges
agent's fees
advertising
accounting fees
certain (but not all) legal fees
rates and water charges met by the landlord
safety certificates

If the house is let fully furnished then a special "10% Wear and Tear Allowance" is available

gra001

Original Poster:

840 posts

257 months

Sunday 15th July 2012
quotequote all
Many thanks guys.