Tax on income from letting a flat(First time landlord)
Discussion
We currently own a flat that we owe £50k on which we are thinking of keeping and letting. We will get a correct BTL mortgage on the property, and, for my sanity, we want to do it all legally.
We could let this flat for approx £1000 pcm. With it comes the benefit that I may be able to retain the use of the garage, and some of the large driveway.
My wife is a stay at home mum, and plans to remain that way.
Am I able to use her allowance, and pay the balance of the difference in the tax? I assume that the tax is paid at the normal 18%?
Can I offset roof, driveway repairs etc, and gas and electric safety into the calculations?
I understand that we can offset the cost of the interest on the mortgate, but it seems that I would not be able to offset any further borrowings on the flat, say if we wanted to purchase a house outright?
About a million other questions, but these are the start
We could let this flat for approx £1000 pcm. With it comes the benefit that I may be able to retain the use of the garage, and some of the large driveway.
My wife is a stay at home mum, and plans to remain that way.
Am I able to use her allowance, and pay the balance of the difference in the tax? I assume that the tax is paid at the normal 18%?
Can I offset roof, driveway repairs etc, and gas and electric safety into the calculations?
I understand that we can offset the cost of the interest on the mortgate, but it seems that I would not be able to offset any further borrowings on the flat, say if we wanted to purchase a house outright?
About a million other questions, but these are the start
Tino said:
We currently own a flat that we owe £50k on which we are thinking of keeping and letting. We will get a correct BTL mortgage on the property, and, for my sanity, we want to do it all legally.
We could let this flat for approx £1000 pcm. With it comes the benefit that I may be able to retain the use of the garage, and some of the large driveway.
My wife is a stay at home mum, and plans to remain that way.
Am I able to use her allowance, and pay the balance of the difference in the tax? I assume that the tax is paid at the normal 18%?
Can I offset roof, driveway repairs etc, and gas and electric safety into the calculations?
I understand that we can offset the cost of the interest on the mortgate, but it seems that I would not be able to offset any further borrowings on the flat, say if we wanted to purchase a house outright?
About a million other questions, but these are the start
You need an accountant We could let this flat for approx £1000 pcm. With it comes the benefit that I may be able to retain the use of the garage, and some of the large driveway.
My wife is a stay at home mum, and plans to remain that way.
Am I able to use her allowance, and pay the balance of the difference in the tax? I assume that the tax is paid at the normal 18%?
Can I offset roof, driveway repairs etc, and gas and electric safety into the calculations?
I understand that we can offset the cost of the interest on the mortgate, but it seems that I would not be able to offset any further borrowings on the flat, say if we wanted to purchase a house outright?
About a million other questions, but these are the start
YHM
JPJPJP said:
You are thinking along the right lines but, as Eric says, a session with an accountant would easily pay for itself in your case.
Thanks, I did. I had a very long conversation with eric, who patiently explained my options.Very helpful person, and if it all goes ahead, my tax issues shall be handled by him.
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