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Tax Return for UK Rental Property

With house prices decreasing, more and more people are choosing to rent their properties until the market picks up. We have compiled a list of some of the most common questions about renting your property and tax returns:

Do I have to do a tax return if I am renting property?
If your profit from rental property is over £2,500 in the tax year, you will need to complete a tax return. If the rental income is below £2,500 and you are employed, you can contact your local tax office to adjust your PAYE tax code and you will not need to complete a tax return.

What are allowable expenses for renting a property
If you rent a property you can reduce your tax liability by offsetting any allowable expenses. These could include:

  • letting agent’s, and lawyers/legal fees
  • building and contents insurance costs
  • loan interest
  • maintenance and repairs -improvement costs are not allowed
  • rent, ground rent and property service charges
  • Council Tax
  • advertising your property to rent
  • other costs such as phone calls

How do I group my rental property expenses?
If your income for property rental is below £15,000 a year before any expenses, you can group them all as a single total on your tax return. If your expenses are above £15,000 you will need to group them separately and complete the full tax return.

How long do I need to keep my rental property records for?
Make sure that you keep any records relating to your rental property tax return for 6 years after the tax year for which it was due, whether you completed a tax return or not.

Anonymous - Thursday, May 20th, 2010

If I have a second home and rent it to my daughter would I have to declare it for tax purposes?

TaxFix - Friday, May 21st, 2010

Anonymous: The fact that you are renting to your daughter will be irrelevant for tax purposes. Let us know if you need any help with your property tax return.

Andy W - Saturday, May 29th, 2010

When it is stated as and allowable expenses for renting a property being loan interest….is this mortgage loan interest or only interest off other loans used for the property please?
If this is for mortgage, will a breakdown off mortgage company be sufficient for the tax man as proof of interest paid for the duration the property was rented for ?

TaxFix - Tuesday, June 1st, 2010

Andy W: If, for example, you take out a personal loan that is used ‘wholly and exclusively’ for the property then any interest paid for this loan can be offset against any rental profit. So if you used the persoanl loan as a deposit for your buy to let mortgage, or if you used the loan to refurbish the property, then any interest can be deducted. A record of the interest payment from the mortgage company would be enough for the Inland Revenue to prove the interest that you have paid. We specialise in doing tax return for properties, if you need any help.

Chris - Thursday, June 3rd, 2010

I have rented my property out for 18 months and the rent I have been getting still leaves me with a shortfall of

TaxFix - Thursday, June 3rd, 2010

Chris: If your income is over £2,500 a year from your rental property, you will need to complete a tax return. If you need help with doing your property tax return, we would be more then happy to help.

Justin - Monday, June 7th, 2010

say for example i do maintainance/ repairs work on a rental property i own and this take day 5 days of my time – can i offset 5 days work at an average cost of a maintainance worker against my total income from the property for tax?

TaxFix - Tuesday, June 8th, 2010

Justin: Renting a property is technically considered a business. You can pay yourself a wage for work completed, and deduct this expense, however you will then need to complete a tax return as you will be self employed, and you will need to pay tax on this income. Feel free to speak to one of our tax accountants for clarification of your situation, also let us know if you need any help with your property tax return.

Woody - Wednesday, June 9th, 2010

My daughter has recently taken an extra lodger. If the lodger stays the income will exceed £4250 by april 2011 for the year. She accepts that she wil have to pay tax if that is the case,opting for method b .What should she do then? What exactly shall she ask the tax office for and how long has she got to ensure method b will apply. She has not filled a tax form in previously.

TaxFix - Thursday, June 10th, 2010

Woody: If your daughter’s income exceeds £4,250 then she will need to complete a tax return to inform the Inland Revenue of the extra income. We specialise in property tax returns if she needs any help.

frosty - Friday, June 11th, 2010

I inherited my fathers house which i rent out, the rent income statements are in joint names with my wife so do we both need to do a return with half each or can it all go on my return.

TaxFix - Saturday, June 12th, 2010

frosty: If you both receive income, you will need to let the Inland Revenue know about this.

louise - Thursday, June 17th, 2010

I brought my house in march 08 and I have now moved in with my partner and I am letting the property. Can I deduct the cost of solisiters/survey costs? of buying the property adn any interest I have paid on mortgage since march 08?

peter - Tuesday, June 22nd, 2010

hi, ime on incapacity benifit and war pension, i have just bought a flat to rent out, having remortgaged my house for the money to buy the flat, i will be getting £400 a mounth rental income, will i have to pay tax on this rental income?

TaxFix - Tuesday, June 22nd, 2010

peter: Hi Peter, you only need to pay tax if you are making a profit (income minus expesnes). You probably need to let the Inland Revenue know that you are renting our our house. We can help with your tax return if you need any help.

Us - Wednesday, June 30th, 2010

Any profit from 2 nd home in USA, who
do I declare this to UK or Usa ??!
And what is the rate of income tax in
USA??

lou - Saturday, July 3rd, 2010

Hi i recently bought a property to rent out but it was in very poor condition and a lot of work had to be carried out before it was rentable. After only being rented for one month before the start of a new tax year but having all the work done 2 months previously am i able to claim any of the money on a tax return as i have only earned one months rent and would these expenses be classed as maintainance or improvements as you can only class maintainance in your tax return. Considering in was nt habitable for a human being i would class as maintainance. Every we did was brought up in the survey beforehand so it was nt out of just “trying to make the place nice”

TaxFix - Saturday, July 3rd, 2010

Lou: You are entitled to claim expenses such as painting, damp treatment, Minor electrical/plumbing/joinery repairs. However capital improvements to the property are not allowed to be claimed. You can check with our tax return accountant and we would be happy to help with your property tax return.

Anonymous - Sunday, July 4th, 2010

hi. Have just been sent a tax return for a property i let out but it is only in my name,however the property is in joint names with my wife.she earned less than 6k last year so is there any advice you can give me regarding this.i earned 38k.

TaxFix - Sunday, July 4th, 2010

Anonymous: If you both own the property and both receive income from it, you will need to show on your tax return the proportion of the income that you receive.

Confused potential landlord - Monday, July 5th, 2010

May sound like a silly move but lets say i rented out my apartment but the rent was significantly lower than the mortgage payments, would i have to pay rental income tax?

TaxFix - Monday, July 5th, 2010

Confused potential landlord: You only pay tax on any profit, after deducting expenses from income.

Andy mc - Wednesday, July 7th, 2010

I have a property I have moved out of as I have a new job in a different area. I have managed to rent my old property out which the rent is about the same as the my mortgage payments. I also have to spend the same amount on renting a property for me to live in. Do I need to do a tax return as?

TaxFix - Wednesday, July 7th, 2010

Andy mc: If you are renting your property you will usually have to let the Inland Revenue about any income you are making from it. We can let you know if you need to complete a tax return and help with it if needed.

dic - Friday, July 9th, 2010

my wife and i moved from our home in 2004 to another house,i then changed my main recident to the 2nd house,if i sell my 1st house am i liable for all the gain,i have owned the house for 34 years,also i let my daughter live there rent free,is this liable for tax.

A - Saturday, July 10th, 2010

I am retired if I move in with my son and rent my property do I have to pay tax?

Anonymous - Saturday, July 10th, 2010

How many buy to let’s can I buy in one year?

J - Saturday, July 10th, 2010

I have bought a buytolet property in June 2010 it won’t be rented until July 2010 when do I complete a tax return?

TaxFix - Saturday, July 10th, 2010

dic: You only pay capital gains tax on your primary residence. If you move out of your house it still remains your primary residence for 3 years. If there was a capital gain after 3 years you would only pay tax on the proportion of gain when your house was not your primary residence.

TaxFix - Saturday, July 10th, 2010

A: If you rent your property you need to let the Inland Revenue know about it. This can be done by a tax return. Any expenses will be deducted from the income and the profit will be taxed at the applicable rate.

TaxFix - Saturday, July 10th, 2010

J: You would need to complete a tax return for the 2010/2011 tax year. You should let the Inland Revenue know that you are renting a property. They should then send you a ‘Notice to File’. We can help if you like with your property tax return.

Hayley - Monday, July 12th, 2010

I started renting my house out in September 09 and am trying to fill out my tax return. Can I claim for having a new carpet fitted and some tiles laid just before I let it out? I had to have them fitted as there was bare floorboards and concrete, therefore not rentable.
Also if any small maintenance jobs come up and they are completed by my dad, do I just claim for expenses or can I claim anything for labour?
Thanks

Deb - Tuesday, July 13th, 2010

Hi We remortgaged our house and bought next door moved my mother and father inlaw in they pay us half what the going rent is the money goes to paying the mortgage we have to add a bit extra should we be filling in a tax return?

TaxFix - Tuesday, July 13th, 2010

Deb: If you are receiving income from a property you should be letting the Inland Revenue know. You can do this by completing a tax return.

Vicki - Thursday, July 15th, 2010

I have had some really bad tenants who have cost me a fortune in repairs- I have made a loss over the last year with this property do i need to fill in a tax return? Is there any tax relife for the materials I have purchased?

Chris - Monday, July 26th, 2010

I have a house that I rent out and the rental income that comes in is lower than the monthly mortgage payment and I have to pay and additional £300 on top to cover this amount, would I have to pay tax on this? The rental income is used purely to pay the mortgage and I see no profit a year.

Many Thanks

David - Monday, July 26th, 2010

Hi
I own an unmortgaged property and was forced to move for my job.
I now rent a property in the new location and the rent on my new property roughly equals (slightly exceeds) my rental income. Do I need to declare this. If so is the new rental an allowable expense to offset it?
Thanks

TaxFix - Tuesday, July 27th, 2010

David: You should let the Inland Revenue know that you are renting the property. The interest from the mortgage of a rented property is an allowable expense.

tony - Wednesday, July 28th, 2010

Hi there,
Can I reduce the tax i pay on income from a rental property by putting the property in both mine and my wife’s name?

thanks

TaxFix - Wednesday, July 28th, 2010

tony: If the property is in both your names then the profit can be divded by two and you will both need to declare this income.

Chris from 3 posts above - Thursday, July 29th, 2010

would you be able to answer my question,

Many thanks

TaxFix - Friday, July 30th, 2010

Chris from 3 posts above: Apologies for the delay in replying. You only pay tax on your profit from rental income. Any expenses are offset against income.

Anonymous - Saturday, July 31st, 2010

Jointly with my husband I ‘rent a room’in our house.
I inherited another property which I let.
Can I offset my £2125 ‘rent a room’ allowance against the profit from the second property?

David - Sunday, August 1st, 2010

Re: previous q.

Thanks for the quick response.
The mortgage on the property is very low. As such I am making a notional profit on the rental income less the mortgage; less any rental costs associated.
What I need to know is if the rent that I pay on the new property where I live is classed as an allowable expense?

Thanks for your time.

minda - Wednesday, August 4th, 2010

I’m employed and also have a portfolio of 4 properties. The properties barely break even. Can I offset the expences made on the properties against the income tax i paid via my employer?

TaxFix - Wednesday, August 4th, 2010

minda: The properties are classed as a business for tax purposes and any expenses incurred from them can be offset against the income. You can not offset tax from your employer.

Steve - Thursday, August 5th, 2010

Hi. We are about to rent our house out and we will rent a house in another area. Will the rent we pay be allowable against the income we receive from renting our house?

Thanks

TaxFix - Friday, August 6th, 2010

Steve: No, this is not an allowable expense.

Andrew - Saturday, August 7th, 2010

I am about to rent my house to friends. I intend buying another house in another city near my parents where I spend a lot of my non working time which I intend telling the tax office will be my main home. When working I may need to stop overnight occasionally at my rented house. How will these overnight stays affect my ability to offset my expenses at the rented house please for tax purposes? Can I keep within tax office rules if I pay for the overnight stays?

Anonymous - Sunday, August 8th, 2010

I want to rent out my home. My mortgage is £600 pcm and I am looking to rent it out for £450 pcm (current rental value). Do I have to fill in a tax return bearing in mind the rental income will not cover my mortgage payment?

Anonymous - Monday, August 9th, 2010

My husband and I are renting out our residential house that will be let from mid August, but we moved out at the start of July. Are the mortgage interest payments, council tax and water rates for the period before the tenants move in an allowable expense?

Lorrie - Monday, August 9th, 2010

We have a self-contained annexe to our house. The annexe is rented out. The house is in joit names so presumably the rent profit is also considered as joint income. However, my wife does not earn enough to use her tax-free allowance.

Is there a way we can declare the rent income to be solely hers?

TaxFix - Tuesday, August 10th, 2010

Lorrie: If the property was in your wifes name and she was to receive the income for the property then she would be the only one required to pay any tax and could use her tax free allowance.

Lorrie - Wednesday, August 11th, 2010

Thanks for this, TaxFix.

Can we just say that the annexe is only in her name even though the house is in joint names?

TaxFix - Wednesday, August 11th, 2010

Lorrie: You definitely shouldn’t lie. If you are both receiving the income in a joint account the profit and tax payable should be split.

Anon - Friday, August 13th, 2010

I am thinking of buying a house and renting out two rooms to friends. What expenses can I use to offset the rental income for tax purposes? Can I offset mortgage interest payments against the income?

Hugh - Sunday, August 15th, 2010

I increased the mortgage on my own residence in order to buy a flat which is now being let. Can I claim the interest on that portion of the mortgage which went towards the purchase of the flat as an allowable expense against the rental income?

ienquiry - Monday, August 16th, 2010

Hi – I have an appartment that is rented out fully furnished – I’m claiming the 10% W&T allowance on my tax return – I have just replaced the fridge freezer, same as the orginal one – can that be off set against allowable expenses?

Graeme - Monday, August 16th, 2010

Hi, if I make overpayments to my interest only mortgage, can I offset those extra payments against my rental income for tax purposes? Thanks.

Dave Price - Monday, August 16th, 2010

I’m buying a property to rent out, my wife is not working at the moment, so if I put the property in my wife’s name, could I use her allowance against the income from the property?

Kate - Tuesday, August 17th, 2010

How much mortgage interest can I deduct from my letting income each month for one house, if my mortgage covers two properties (about 50% of each property?)

Liz - Tuesday, August 17th, 2010

Hi
I am now making a profit on my rented property (£300 per month after expenses – interest only mort). I am paying the profit directly to my main residence (capital & interest mort). Someone told me a while ago that you can use this to offset some tax??? Can you clarify?
Thanks

TaxFix - Tuesday, August 17th, 2010

Dave Price: Yes, if it is in her name and she receives the profit.

TaxFix - Tuesday, August 17th, 2010

Kate: You can deduct any mortgage interest from the rented house and any other allowable expenses related to it.

Kate - Thursday, August 19th, 2010

I live in one house and rent another. The combined mortgage for both properties is just over half the value of both properties . For tax benefit perposes can I declare that the mortgage covers the whole of the rented propert (therefore being able to claim tax benefit from it) and the remaining part of the mortgage covering my home.

Killy - Thursday, August 19th, 2010

I have retned property and i have no outstanding mortgage on that property. Can I offset my residence mortgage interest against my rental income.

TaxFix - Thursday, August 19th, 2010

Killy: No, unfortunately you can not.

Mike - Thursday, August 19th, 2010

Similar to Hayleys question. I do various repairs and decorating on my flat in between rental periods. I belive i can offset the material cost of that work, but can I offset a labour cost for the work I do. Would I need to invoice myself using a norminal hourly rate?

Hugh - Friday, August 20th, 2010

any chance of an answer to my query above (Aug 15th). It may be a variation on Killy’s position, but in may case the mortgage on my own residence was extended specifically to raise the money to buy the flat to let. Can I claim exemption for the interest related to the amount borrowed for the purchase.

Kate - Saturday, August 21st, 2010

Hello
i posted a question on Thursday morning. Is it possible to have reply please. Thank you in anticipation.

peter - Friday, August 27th, 2010

I’m letting out one my rooms in my house i own to somebody for £3120 a year. I’m living there to – do i have to pay tax on this earning. I’m employed full time.

TaxFix - Friday, August 27th, 2010

peter: You may be eligible to receive all that income tax free under the goverments rent a room scheme.

Think we are paying too much - Saturday, August 28th, 2010

I wonder if yo can help. We own an appartment which we are paying a mortgage on. The mortgage is £875 and the rent is £950. I’m am confused on whether the tax is paid using the whole mortgage amount e.g. £950 – 875 = 75×12 months = £900 profit or is only the INTEREST proportion taken away hence the taxable income is greater. E.g. 875 – 563 (INTEREST) = 312. 950-312=638×12 months = £7656. Many people are telling me that we are paying alot of tax. We are paying £3000 a year. This seems alot based on Rent and mortgage amount.
Thanks

Rich - Monday, August 30th, 2010

I have moved towns and because of the speed that I needed to do it I have rented a property to live in. I have also rented out my property in my old town. The mortgage on the old property is quite low and the rental income is quite good which will result on a significant profit on that property rental. I am however having to pay a significant rent where I am now renting. Is there anyway of offsetting the rent I have to pay as a cost against the profit from renting out my house?

TaxFix - Tuesday, August 31st, 2010

Think we are paying too much: Only the interest portion of the mortgage is taken into account.

p&d - Saturday, September 4th, 2010

hi tax fix ,we have several properties one of which is now in need of major repair ,the old wooden windows are now rotten and need replacement
this i think i understand is a capital expense ,can any of this cost be claimed as repairs ,the property is probably not fit for rental without these works
thanks in advance

Art - Saturday, September 4th, 2010

I’ve just purchased one new property for rent. What purchasing costs can I deduct in my annual Self-Assessment? I presume solicitor fees, search? Stamp Duty?

paul - Sunday, September 5th, 2010

i am getting £120 per month rent from a third share of a house.
the interest paiyment on the loan is £105 per month giving me a profit of £15 per month…

Question……..i recieve working tax credits.
in the “other income” part .do i put down £120 per month or £15….

Mo - Tuesday, September 7th, 2010

my father transferred 2 flats to me at the end of 2007. The properties are solely in my name. My wife got them rented out and she receives all the income into her separate bank account. She does all the work related to the properties. I have a mortgage on one of the properties as originally we were thinking about buying an investment property. The mortgage is a buy to let in my name.
As I thought, quite logically that you are taxed on your income, the tax return to do would be my wife’s return because I do not get any income myself. She does not work so could use her personal allowance.
For 07/08 and 08/09 the properties did not make any profit. I expect there will be around £3k profit for 09/10.
Have we dealt with the tax correctly ? If not then what is your advice on what to do now, given that 2 tax returns have already been submitted in my wife’s name ?

Sammi - Wednesday, September 8th, 2010

We bought a house in Jan that we are now renting out. Prior to letting it for the first time we did about £2000 work on it -cosmetic, paint, carpets, curtains etc and electrics. Can this be offset against our income for that year?

Asset - Thursday, September 16th, 2010

I am self employed and I am vat registered. I have recently taken out a 2nd motrgage on my existing property to purchase a 2nd property which I rent out at £450 per month. I had to do a lot of work to get the property to a position that someone could live there. As I am vat registered for my business can I claim the vat on the materials ect I have used to renovate the 2nd property?

TaxFix - Monday, September 20th, 2010

p&d: This page may be of help to understand what you can and can’t claim for.

TaxFix - Monday, September 20th, 2010

Art: This page may help to determine what you expenses you can and not claim for.

TaxFix - Monday, September 20th, 2010

Mo: The person who receives the income from the properties should be doing the tax return. I hope this helps.

anonymous & worried - Monday, September 27th, 2010

Hi,
Should I have been paying tax for the rent I receive on my house?
I split with my partner and moved in with my parents because my wages were less than the mortgage & bills. I have had the house rented out since December last year and after the Mortgage, agents fees, house insurance I have £100 profit. Of this profit, I have had to use this money on at least a couple of occasions to pay for damage to a window and a non working boiler.
I am a bit confused but frightened to ask official help. I make £100 (just less) each month on this arrangement but Is this what is classed as profit?
Thanks

Rob  - Tuesday, September 28th, 2010

I have just tenanted my property. What is the CGT rule if tenants stay more than 3 years please? Do I need a valuation now. Is CGT payable on sale(if it is at all)at difference between now price and sale prce or difference between the price in 3 years and the subsequent sale date please? One agent says value 500,000, others more. If, for arguments sake it was 550,000 in 3 years and 600,000 upon sale in six years would the liability be CGT on 50,000 or 100,000? Allso as higher rate taxpayer, would that be at 50 per cent?

iggle piggle - Thursday, September 30th, 2010

Hi, we are thinking about renting out our mortgaged property. We will be paying more mortgage than we get in rent and also paying rent to another party for the house we are staying in. What is liable for tax, as I think we may finacial end up worse of if we have to pay tax on the whole amount of rent we recieve. We will be paying £75 less rent at the new house than we will be recieving. Is it just this amount we will have to pay tax on

TaxFix - Thursday, September 30th, 2010

iggle piggle: You can deduct the mortgage as an expense when calculating the profit that you will need to pay tax on. The cost of renting another house for yourself is not an allowable expense.

Iain - Sunday, October 3rd, 2010

i rent my property to my so who has started to claim housing benefits as his work has cut his hours ,what steps should i take regarding Tax ect.

Mandy R - Sunday, October 3rd, 2010

i have recently bought a flat to rent out and it needs new windows as they are in a dangerous state, can i claim tax back on these.

Confused Chris - Tuesday, October 5th, 2010

Hi, my girlfriend & I own a flat (deeds wise she owns 52% and I own 48% – her dad stumped the deposit) We rent it out nowadays because we own & live in another property. She is a 20% tax payer, I pay 40%. Am I right to believe that because we aren’t married we can apportion the income/profit as we choose, as long as we sign an agreement betweeen us that this is the case. e.g. she takes 100% so only she needs to do a Self Assesment. All rental payments go to an account solely in her name, but we are named as joint landlords on the rental agreement. Thanks in advance!.
Cheers

lee - Friday, October 15th, 2010

Do i have to pay the council tax on the property i will soon be renting out or is that responsability of the tennant ??

TaxFix - Saturday, October 16th, 2010

lee: The person living in the property should usually pay the council tax.

lee - Sunday, October 17th, 2010

I will soon be renting out my flat and am currently on a interest only mortgage if i want to make repayments on that mortgage from the extra money that is earned from my rental income will i still be liable for capital gains tax even though im putting that money back in to reduce the mortgage ??

lyn.hughes - Friday, October 22nd, 2010

hi
the house that i live in has a interest only mortgage against 2 other properties that i receive rent of £10,000 per annum. Please can you tell me if i can claim the £340 per month mortgage paymnent against the rent as expenses.

TaxFix - Saturday, October 23rd, 2010

lyn.hughes: You can only claim the interest payment from the rental properties against your rental income.

anymouse - Tuesday, October 26th, 2010

my newly married wife rents out her property. the property is in her name, she currently does not work or draw benefits. Is it best to leave in her name for tax reasons or will the profits be required to be declared as joint income.

Marie  - Tuesday, October 26th, 2010

Hi

I’ve rented a property out for nearly 5 years I make nearly £80 a month loss and because of this loss I wasn’t aware that I needed to let the Tax man know what do I need to do to get this sorted and who do I need to ring ? I was told because I’m making a loss I don’t need to do anything then I’ve spoken to someone else who says I do ? Any help would be greatly appreciated.

Thanks Marie

TaxFix - Tuesday, October 26th, 2010

anymouse: If the property is in yours wife’s name and she is receiving the income, then she can make use of her tax free allowance. You do not have to declare it as joint income.

TaxFix - Tuesday, October 26th, 2010

Marie: You can contact your local tax office and let them know about your property.

alex - Wednesday, October 27th, 2010

Hi there,
We have bought a house in both my mine and my wife’s name. We intend to rent it out to my wife’s mother. We intend to take a second mortgage (not a buy to let) to finance the purchase of the second home, which will be interest only.We will be getting rent from my wife’s mother, which we think will be about £150 more than the monthly repayment. I am a higher rate taxpayer, my wife is on basic.
What are the tax implications of any rental income we receive on a yearly basis?

Thanks

Mari - Wednesday, October 27th, 2010

I have a property in my name with no mortagage but the income from it goes to my brother , Do i need to declare this for tax purposes.

David Fletcher - Tuesday, November 9th, 2010

I have been renting my property for the last four years but I have made a loss for this time however now the interest rates have gone down on my mortgage I am now making a profit. How many years can I offset the losses to the profits?
I have worked on the property just to maintain it to a decent standard, can I offset my own wages against this profit? I have been self employed for 15 years and have had an accountant for this time however due to lack of work I would like to start to do my own accounts online so how easy would it be to sort out the losses I have had on the property rental?
Regards
David Fletcher

LB - Wednesday, November 10th, 2010

Do I need to complete a tax return if my monthly rental income only covers a portion of my mortgage repayments? I do not ‘profit’ from renting my home, which is rented for a fixed period with consent from my lender. My intention is to return to the property.

TaxFix - Thursday, November 11th, 2010

LB: You may not have to pay any tax but you still need to let the Inland Revenue know that you are renting your property.

kaz - Wednesday, November 17th, 2010

HI I am renting my property since sept 29th 2010, I have been told that i will need to inform inland revenue and pay any tax in 2012.Is this correct, if yes, when i do my tax return do i include all cost accrued since 2010

Thanks

P - Friday, November 19th, 2010

I have inhertited a house , i can raise a mortgage to do repairs on my main residance, and i want to rent the property out, the rent will just cover the mortgage payments will i pay tax

Jules - Monday, November 22nd, 2010

I am planning to rent out a property on which I currently have no mortgage. I am also planning to take a new mortgage on a new property, which will be my prime residence. In acquiring the new mortgage I will count the earnings from the rented property as part of my earnings. Will I be able to offset any of the interest I am paying on my new property against the income i receive from my rented property?

TaxFix - Monday, November 22nd, 2010

P: You only pay tax on the profit from the rent. You can deduct mortgage interest from any revenue to determine your profit.

Kaz - Tuesday, November 23rd, 2010

Hi. I have a rental (buy to let) property which even with low interest rates is making a loss due to market saturation and very high letting agent fees etc.etc. is it possible to get a tax rebate on UK property self assessments or would i just have no bill rather than a tax bill? (I am also employed and pay usual tax through employer, this self assessment is just for uk property no other income). thanks

marty b - Tuesday, November 23rd, 2010

hi, what is classed as a profit. my morgage is £450 and if i rented out and got £650 would it be A: £200 which i class as profit or B: £650. as i would have no other outgoings on the property apart from the morgage

I S - Wednesday, November 24th, 2010

I rent a small number of properties. We are now contemplating renting out our family home so that we can relocate, in which case we intend to rent elsewhere. Is there any way in which the rental income from the family home can be deemed a tax free income, or could be offset against the rent we ourselves would pay?

TaxFix - Wednesday, November 24th, 2010

Kaz: You wouldn’t be able to claim a tax rebate, but you won’t have to pay any tax if you are making no profit.

TaxFix - Wednesday, November 24th, 2010

marty b: You can deduct the mortgage interest to calculate the profit from your rental property.

LOUISE - Saturday, December 4th, 2010

Hello,
I have a query regarding a tax liability for a 2-bed flat that is jointly owned by my husband and I. I am currently not earning and he is in the higher tax bracket. From previous posts, I presume we are both considered as landlords so just to clarify do we both do separate tax returns whereby my husbands half of the profit is taxed at the higher rate and my half of the profit is calculated less my tax free allowance and then at the lower rate of tax?
Thanks in anticipation of your response,
Louise

TaxFix - Monday, December 6th, 2010

LOUISE: It depends on who owns and receives rent for the property. If you are receiving the rental income, you should be taxed on the profit and will need to complete a tax return.

Les  - Tuesday, December 7th, 2010

Hi , current home owner ( paying mortgage ) thinking about buying another house for student daughter an a couple of her friends. As higher rate tax payers will the rental income be classed as income so therfore pay 40pc tax ? also at end of studies we sell will we have to pay 40pc capital gains tax ?

TaxFix - Wednesday, December 8th, 2010

Les: You only pay tax on any profit, so mortgage interest and any other expenses minus rental income. You will pay CGT if the property is not your primary principal residence but everyone gets a yearly capital gains tax allowance, which you can use.

Hamish - Tuesday, December 21st, 2010

My wife and I have bought a flat for our son to live in whilst at college for 4 years, the intention being that he can rent out the spare room to pay for his studies and living expenses. Is it OK to do this or do my wife and I have to pay tax on the rental my son collects for himself as a student.

TaxFix - Tuesday, December 21st, 2010

Hamish: Any income from the rental of a property needs to be declared and the profit will need to be taxed.

Mr Ajmer Khatkar - Thursday, December 23rd, 2010

Hi,

My father has recently bought a house but has put it in my name however he benefits 100% from the rental income, can I draw up a promissory note stating that I pay him the monthly rent that the propery generates therby negating the need to fill in a self assesment or can my father declare the rent even though the property is in my name.
Many thanks
Aj

landlord1 - Thursday, December 23rd, 2010

thanks for useful advice on this forum. I rent a property that’s jointly owned with my wife. Rental goes into a joint account and we’re now preparing our first tax return. Should we (can we?) submit a joint tax return or is it better to do an individual one – and if so who? She works p/t, I work f/t so earn more.

Jim - Friday, December 31st, 2010

Hi,

My flat is on a part interest/repayment mortgage. Can I claim the expense for a percentage of my monthly mortgage payment? As well as new interest accrued that year?

Thanks

TaxFix - Monday, January 3rd, 2011

Jim: You can claim back the interest portion of your rental mortgage.

Anonymous - Wednesday, January 5th, 2011

My husband & I are thinking of buying a flat to rent out. The property will be purchased in both our names. I do not currently work and my husband is a higher rate tax payer. If I receive the rental income into a bank account in my name only. Will I be the only one to complete a tax return as I am receiving the income? Also will the tenancy agreement have to be in my name only?

Jim - Thursday, January 6th, 2011

Thanks for the help!

I have found out this figure from my bank per month. But my mortgage statement also shows an interest amount being added annually, is this the same as what I have repaid, but just listed annually not monthly?

Lynne - Thursday, January 6th, 2011

What can be offset against when having a rental property. Had to have a new kitchen and bathroom fitted, and decoration prior to rental along with tiling and floor coverings. Can these costs be offset

Anon13 - Monday, January 10th, 2011

Hi,

I own three properties which I bought one at a time and then moved out of and rented. All are on residential mortgages. I declare my tax of rental income and deduct the mortgage interest as an expense.
Apart from informing my mortgage companies about the fact that I am letting, am i doing the right thing in deducting the interest as an expense even thought it was on a residential mortgage?

Lars - Wednesday, January 12th, 2011

I have income form a rental property since March 2009 – My tenants were DSS, and it took a while for the council to set-up the payment; received first payment late April 2009 (09-10 tax yr.)

I had to refurbish/up-date the property before tenants moved in (Jan-Feb.2009) and have loads of expenses/invoices from this periods. Should I have submitted a tax return for 2008-09 & declared these expenses as “adjusted loss”; or is there a way to claim the expenses (paint, insulation, energy saving items etc.)) in my tax return for 2009-10.

TaxFix - Wednesday, January 12th, 2011

Anon13: The interest on the mortgage is an allowable expense when calculating your tax liability.

Mrs James - Thursday, January 13th, 2011

I own 50% of my deceased mothers property and I am retired. Would I have to pay tax on any rental income? Also the other half is owned by my sister who is employed so would this effect what tax I pay?

emma  - Thursday, January 13th, 2011

I am a tenant looking to take in a paying lodger in one of my bedrooms…will i need to declare this additional income to the tax man as I have a full time job

milly molly - Monday, January 17th, 2011

Hi
i have two properties – one is my main residence and the other a rental property with a buy to let mortgage
in order to carry out repairs etc on the buy to let proprrty i drew down on my main mortgage and obviously pay interest on this amount
when filling in my tax return can i account for this interest i pay and also how do work it out bearing in mind i have changed mortgage suppliers since so the draw down was included in the newly calculated mortgage
if you can help would be most appreciative

john - Wednesday, January 19th, 2011

hi i have rented out a buy to let property for the last 2 years which i solely own and make a £2000 a year profit to which i file a self assessment tax return
last year we had to re-mortgage our house which i jointly owned with my partner on a buy to let interst only mortgage and we moved out and rented the house out we get £500 a month rent but the interst only mortgage is 510 a month and with other bills from the property we make a loss of around £300 a year
do i fill in my self assessment tax return with both property income and loss together or do i need to file two returns and will my partner need to file a return

chelsea - Saturday, January 22nd, 2011

I paid down the buy to let mortgage on my investment property three years ago to a minimal amount .
On my principal private residence I have an offset mortgage base +0.75% with up to 80k I could drawdown .

Can I draw on this as a loan to in effect take mortgage against my BTL & create interst charge which I can offset against rental tax ?

If not any other ideas ?

Kelly - Sunday, January 23rd, 2011

Hi, I have recently rented out my flat for £650 pcm. I am a single parent who receives working tax credits. Do I have to declare this rent to the tax credits office? Thanks

pauline rendell - Wednesday, January 26th, 2011

my friend owns a property but for some reason, he lets his father collect the rent and keep it. who is liable to pay income tax, my friend or his father

Graeme - Thursday, January 27th, 2011

Hi there

In tax year 09/10, I bought a new bin, lights and a tv for my flat which I rent out furnished. Can I deduct the cost of these items from my property income?! I know that you can deduct things like the cost of paint as a repair, but there seems to be no guidance as to whether things like tvs which are bought for rental properties can be deducted!

I am claiming the 10% wear and tear allowance.

I have searched the web for hours for an answer to this question to no avail. Everywhere just regurgitates the HRMC/Direct Govs own list of allowable expenses!

TaxFix - Thursday, January 27th, 2011

pauline rendell: Whoever owns the property should be liable for the tax.

TaxFix - Friday, January 28th, 2011

Kelly: You should inform them of any change in situation like this.

AG - Saturday, January 29th, 2011

Hi, I am registered as self employed but do not earn my full personal allowance. My husband and I have a house we rent out, can I do cleaning and maintenance work myself and bill myself for labour to off set again tax (as an expense) as long as I declare it as my income? Many thanks

John - Saturday, January 29th, 2011

I own a flat that I wish to sell that is in my sole name.
I am currently renting the flat out.

My wife owns the house that we live in.

I am basic rate tax payer.

Would the flat sale be subject to capital gains tax as it in my name.

TaxFix - Tuesday, February 1st, 2011

John: If it is not your primary Principal Residence you will normally have to pay capital gains tax.

pug - Tuesday, February 1st, 2011

i am considering letting out my property and moving in with the in-laws. My property is in my name only but as i am married and my wife has no income can i have the rent paid to her only as i am a 40% tax payer

IONA GRUBA - Saturday, February 5th, 2011

If I bought a property to rent and put it in my children’s name as well as my own name, will it be possible for me to take the income because I am retired and do not pay any tax.

Paul - Monday, February 7th, 2011

I have rented my main residence for two and a half years, it will be three years in September. do I have to pay capital gains tax if I sell after September. Can I move back into my home next year and sell soon after and avoid any tax? thanks.

j sharpe - Wednesday, February 9th, 2011

If I buy a second property, rent for a period, then sell it, is the CGT due on the increase property price or the whole amount. e.g. Buy for £250k, sell for £260k, is the CGT (18% I believe) due on the £10k?

TaxFix - Wednesday, February 9th, 2011

j sharpe: CGT is only paid on the gain in price.

TaxFix - Wednesday, February 9th, 2011

Paul: You can move out of your house for 3 years before it is no longer classed as your primary principal residence. After this point you would need to start factoring in capital gains tax.

TaxFix - Wednesday, February 9th, 2011

IONA GRUBA: The income would be split between the owners and each taxed on the profit of their share.

TaxFix - Wednesday, February 9th, 2011

pug: The income should be divided by the owners of the property, in that share.

Stevie - Tuesday, February 15th, 2011

I joint own a flat which I couldnt sell, so we got permission from mortgage company to rent out (2years ago). The rent has never ever covered the mortgage until August 2010, then the tenant stopped paying!! Its probably cost me aroun £1200 per year just to keep its head above water with a tenant in. Can you advise if any returns should be submitted, I was told no initially, given that I am making zero profit and running at a substanital loss. Thanks.

TaxFix - Wednesday, February 16th, 2011

Stevie: You might not have to pay any tax but you should still tell HMRC that you are renting your property.

Anon - Wednesday, February 16th, 2011

Are there any tax deductions./allowances for returning a previously rented out property back to a livable state?

Maria Rankin - Friday, February 18th, 2011

Hi,
How many years can you keep a rental property before paying CGT?
Many thanks

TaxFix - Wednesday, February 23rd, 2011

Maria Rankin: If you lived in the property and then rented it out, it will remain your primary principal residence for 3 years.

Alan - Saturday, February 26th, 2011

My Mother put her house in my brothers name two years to avoid inheritance tax. We must be seen to be paying rent and have done so now at £850 / mnth for two years on the 17th june. We have decided to take the option of paying the tax mt brother will have to pay ourselves (he has not lived or worked in the UK for over 30 years and does not want to get involved with the UK,s red tape) Approx how much should we expect to have to pay each year ?? Many thanks, Alan.

jo - Tuesday, March 8th, 2011

I borrowed money off a family member to buy a property and have been paying regular interest on the loan by standing order. However there is no formal loan agreement. Can these payments be deducted as expenses?

Ann Marie - Saturday, March 12th, 2011

I am working aboard for two years, and therefore, I am renting my house, when should I need to provide a tax return and who will help mew complete the form as I have never, done this before.

TaxFix - Monday, March 14th, 2011

Ann Marie: We offer a specialised tax return service for rental properties. You can read more about our service here.

Gazza - Wednesday, March 16th, 2011

i am thinking of changing my 2 properties to interest only mortgages which will earn me £875 profit per month (£10,500 per year) I am also employed. If i declare this rental profit will they combine my employed wage with the rental profit and then tax me on the combined total? If this is the case i will then be taxed 40% and will be worse off, unless i claim offsets. I wanted to place the rental profit back into purchasing another property, then keep using the rental income to purchase again every 18 mths, basically starting a rental business. Can someone explain the best way forward.

TaxFix - Wednesday, March 16th, 2011

Gazza: Your other income will be taken into account and you will be taxed at your marginal rate. Only the income in the higher rate threshold will be taxed at 40%. You should have already declared your rental properties to HMRC. We offer a property tax return service here.

Boodle - Wednesday, March 16th, 2011

Hi

I have two questions:

1.If my husband receives half the rental income and I receive half, and say for example each half is below £2500, does that mean no tax return is required?

2.If we increase the mortgage (as we are investing in another property which is for us to live in ourselves) from say 50k to 150k can the interest for the full amount of the extended mortgage be offset against i.e. monthly interest on the 150k mortgage? Someone said to me you could only offset against the interest on the original mortage amount, so that it’s related to what you actually paid for the house. I hadn’t ever heard about that rule before.

Thank you.

cmn1969 - Tuesday, April 5th, 2011

I am going to rent a property with my partner and rent out my house to cover this new rent. Would I be better to take out an interest only mortgage on my house (currently mortgage free) so that I can offset the mortgage interest against rental income for tax purposes? It seems crazy to pay 20% interest on the rental received, when it is going straight out again to pay the new rent.
Any advice please?
Thank you

Marg - Tuesday, April 19th, 2011

I took out a buy to let loan 3 years ago but the Building Society would not lend me quite enough on that property so I had to borrow the £20k deposit on the mortgage on the house which I live in. I haven’t been claiming the interest on the 20k as an expense but reading some of the comments on this page it would appear it might be allowable? I took out the loan and immediately paid a cheque for the deposit on the let house. I would be interested to hear whether or not you think I can claim this as an expense.

Ian J - Monday, April 25th, 2011

Hi, we own an apartment in Glasgow in which the deeds are jointly in the names of myself, my wife and our 2 sons. We started letting it for the first time last September and to make things simple I registered as the landlord. Currently the rent is payed directly to my younger son – it was because he was unemployed that we let it out. Is the tax liability for him, me or is it split 4 ways (the older son is a US resident). If it is 100% for me or my younger son we would be paying higher rate. If it is the registered landlord that is liable, can I make my wife the landlord who will pay basic tax. Thanks

Anna - Monday, May 2nd, 2011

Hi,
We bought a house last year. Since than we have been working on the house preparing it for us and future lodgers (plastering/painting/reparing floors/tiling etc)
We want now to get 4 lodgers who will have separate kitchen and bathrooms but will use the same entrance as we do. Basically we will live downstairs and lodgers will use whole second floor. The total rent will be equal or more than our mortgage payment.
Could you tell me please what tax do we have to pay (we are joint owners) and what expenses can we deduct, please.
What about the materials/labour to date and interest?
We know nothing about taxes etc so Im sorry if my question sounds a bit silly.
Looking forward to hearing from you soon.
Anna

flustered - Tuesday, May 3rd, 2011

apologies if this is a very basic question, but needing reassurance or advice. If a rental period ran late april ’10 – late april ’11 is this tax return due on paper october ’11 (online jan 2012)? regards

annonnomus - Sunday, May 8th, 2011

I rent out a property for £550 which after mortgage, landlord insurance etc give profit of £200 which figure should i put for tax credit calculations?

James - Friday, May 13th, 2011

I will be shortly be renting out my flat
Is the a check list of things i can claim on my tax retun?

Allerton - Sunday, May 29th, 2011

I let out a property that has a lot of equity in it and want to take some capital out of it to buy another property for me to live in. What are the tax impliations of doing this? Thanks for your help.

Anonymous - Wednesday, June 1st, 2011

I own a second home, where my mother has lived rent free since I bought it 15 years ago.
I maintain the property, she pays the utility bills etc.
As I don’t receive any income from the property, is there anything I should do regarding taxation?

Lee - Monday, June 6th, 2011

I am in the process of raising funds on my primary residence (by increasing my current mortgage) to buy a second property which I will rent out. Can the interest on the new portion of the mortgage loan be used as an allowable expense?

vicki - Saturday, June 11th, 2011

A friend who rents out her flat has realised that last year in her tax return she forgot to put down her mortgage interest as one of her expenses . Can she put it down in her current tax return as well as the 2010/2011 interest?

Jewels - Saturday, June 11th, 2011

I have found a house to buy as my PPR with an annex (converted separate garage) which includes a rentable annex (which is fully habitable with own kitchen etc and own electric meter).

I have supplemented my PPR purchase budget with a mortgage in order to buy this property, where rental income from the annex will cover the mortgage.

How much mortgage interest can I offset against the rental income:
a) all of it because the mortgage to cash deposit ratio is roughly the same ratio as annex to main house area (and I elect to invest no cash in this rental business)
b) An apportionment of the interest based on e.g. floor area of annex versus total floor area (annex + main house)
c) 0 because you cannot offset interest from a mortgage on your PPR

Or something different to a-c?

Thanks in advance

Kurt  - Sunday, June 12th, 2011

My wife is looking to buy a new build starter home for my daughter who is eight years old; the price of the property is 115,000. My wife can put down £30,000 deposit and the rest on a buy to rent mortgage. She is hoping to rent the property out for the next 12 years until my daughter is of an age to fly the nest. When the time comes house prices will have gone up (one would think). My question is could my wife sell the property to my daughter for the same price that my wife paid for it, thus not paying capital gains tax. Second question the income from the rent would be the only income my wife earns if this is below the current amount you can earn before paying tax, would she not pay tax, or is there another tax that needs paying?.

confused - Friday, June 17th, 2011

Hi
My partner is looking to sell his house (valued roughly £90,000) to his son for £50,000. He will then give his other son £25,000, keeping the rest as his own income ( renting elsewhere). What, if any implications are there to both points please.. thanks

Keith - Saturday, June 18th, 2011

I have a Property that I rent out Gross 21K , after Expenditures 3-4K .. I have a Mortgage on my own home to pay ,I am a single 64 year old, I am unemployed ,unable to qualify for benefits or credits , What should I do ???

zooty - Sunday, June 19th, 2011

If i´was to rent my commercial property to a company and they pay rent every 3 months. The rent collected is paid directly to the bank to cover the property purchase loan, is there tax due, for example every 3 months half the money paid is interest and half is capital.

neely - Tuesday, June 21st, 2011

If i buy a house and let my daughter live in it rent free for two years until she is in a position to buy it from me will i be liable to pay tax in some way ? thanks

Anonymous - Tuesday, June 21st, 2011

I have rented my house out as I had to move areas for my work. I let my property for £675 pcm but it costs me £1000 pcm to rent a place in my new area, do I have to declare my rental income or can I offset these against eachother?
I tried to sell my house but in this market I couldnt so had to let my house and rent another.
Many thanks

Henry - Tuesday, June 28th, 2011

Myself and my wife bought our first buy to let property at the turn of the year (tax year 2010/11). We spent a significant amount on making it habitable. I understand that some of the investment will be deductable and some won’t. But my question is can we set the net value of the loss on property (allowable costs minus rent) against the tax we paid in our main employments?

Anon - Saturday, July 2nd, 2011

My boyfriend is moving into my one bedroom flat which i own, he is going to help me out with some rent money but do i need to declare this for tax reasons?

sam - Monday, July 4th, 2011

ive rented out a property for more than 3 years. If I move back in, does it become my primary residence immediately, or do I have to wait for a set period of time before I can sell without paying CGT?

sam - Monday, July 4th, 2011

I have rented out a property for more than 3 years. If I move back in does it become my primary residence immediately. If I sold would I still have to pay CGT for the years I rented, even though it was now my primary residence?

david b - Tuesday, July 5th, 2011

Hi,Both my wife and I are taxpayers, we currently rent a property out,The mortgage is £80 less per month than the rent, Are we supposed to pay tax on this? Also, the house will be payed for by the time we retire, Would we pay tax on the sale, Or would we better off continuing to rent?

Jane G - Sunday, July 10th, 2011

We will inherit a property following the death of my mother in law. We are letting this property out. Is it better to put the house in my name as my husband pays tax at higher rate ?

Thanks

Colin - Tuesday, July 12th, 2011

I will be inheriting 2 houses in a will would it be better to put them in joint names with my wife or have each property in individual names.As we probably will sell at a later date.
Thanks

Marie - Thursday, July 14th, 2011

If im putting new carpets down to be able to rent out my home when i come to work out my tax implications are carpets deductable are not its classed as a unfurnished property

paul  - Saturday, July 16th, 2011

My wife and I recently completed a total refurbishment of a property. We made a reasonable return. We wish to take part of the profit as wages as we are not employed at present. Can we do this legally ?. We will still need to declare some cap gains at the end of this year on our self assessment. The local tax office were not at all helpful and suggested we cannot pay ourselves which seems ludicrous ?.
regards
Paul R

Yasmin - Monday, July 18th, 2011

If i rent my property to my brother and the rent just covers the mortgage payment will i need to pay tax on the property?

Nicola Cootes - Thursday, July 21st, 2011

Hi, we may be moving abroad next year and want to rent our property out. The problem being is that we bought a house 3 years ago for 170,000 on a 100% mortgage. We have never fallen behind with payments and will not be relying on whoever rents the property to cover the mortgage. When I spoke to our lender they said they would do it but by putting an extra 1% onto our mortgage. This works out at about 200 extra a month. Is there any way this could be negotiated? We would consider selling if the mortgage went up too much and surely the mortgage company would rather keep us than loose out. Since the property down turn it is worth about 160,000 – can you advise?

Chris W - Monday, July 25th, 2011

As the mortgage is just over what the rent is i receive i have not advised the tax man do i need to? also if i do as its tax’d can it be off set against my income from my main job? ie pay less income tax as it i lose money from my rental property…

Joanne James - Thursday, August 4th, 2011

hi, we have been renting a house out that I own jointly with my brother for that last two and a half years. We would like to continue renting the house for at least a further two years, after which time we will prob sell. We are wondering what the implications are for capital gains tax. Can you give me any info or direct me to someone who could help. Thank you.

JENNY C - Thursday, August 4th, 2011

In October 2010, my tenant paid me 12 months rent in advance. The tax office says I should declare the full amount in the tax year it was recieved. My accountant says I should apportion the rent, ie 5/12 as I shall be accounting for the extra 7 months in the wrong tax year. Which is correct?

Claire29 - Saturday, August 6th, 2011

Hi, I have a repayment mortgage on my home which I am thinking of renting out and then renting another property in a different area (better school for daugther) I receive working tax credits and was hoping you could tell me if I earn less than £200 a month profit from renting my own property if I would A)loose the tax credits and B)have to pay tax on the additional earnings.

alison - Monday, August 8th, 2011

we are working abroad and our main home is being rented out, we have had an offer from the renter to buy the house and we would like to take this.

am i safe to assume we will not get clobbered with CGT, as it was our main and only home ?

Hayls - Monday, August 8th, 2011

Hi We are wanting to rent our property out for £400 a month rental value and our mortgage is £460 repayment and interest. I have rung them and they said it needs to be 125% of mortgage does this mean the interest amount only or will i not be able to rent my property. We need to rent it out and know we will not get anymore then £400 for it a month. Please help bit confused. ALso should i reduce my mortgage to interest only?

hrebie - Thursday, August 11th, 2011

If I extend the mortgage on my house to pay for a 2nd house as a holiday let, can I still deduct the interest on this mortgage from rental income as an expense? If so, would I work out the interest to offset based on the amount of the mortgage required to cover the purchase price of the new property?

jade - Friday, August 12th, 2011

how long have i got to collect my tax rebate or isnt there a time limit ??

Colin G - Friday, August 12th, 2011

Hi
I and my mother took out a joint mortgage to buy her council flat under the rtb 7yrs ago and after 3yrs had passed the mortgage was changed to my name only and ownership was transferred to me.She now lives there with a 20yr lease of £5 a year rent. I have never stayed there and have always stayed with my partner who has a mortgage on our house in her name only. I know it sounds complicated but what cgt would i be liable for on my mothers flat in the future.

Mary - Tuesday, August 16th, 2011

I will be renting out my property because I need accommodation near my uni for the next 3 years. The income from my home will provide the funds for me to rent near my uni. Will I have to pay tax on my rental income, or can my own rental expenses be used to offset for tax purposes?

Bhasky - Thursday, August 18th, 2011

I jointly own a flat with my wife and had been living in the same since past 5 years. Now that we have a kid to look after; we are planning to rent a house near a school. The house we plan to rent will cost us 1600 pouns and we will be renting our property for 1500 pounds. In terms of our finances, we will have to put 100 pounds extra over the rent to cover mortgage and maintenance charges. So ideally we are paying extra from 200 pounds from our pocket as earlier we were just paying for mortgage and maintenance charges. Are we liable to paying any extra tax or is there a possibility to ask for some refund? please advise

Adam101 - Saturday, August 20th, 2011

Hi I am about to buy a house which I wish to rent out and this is my first time buy to let.
I am a bit confused about weather I can get a residential mortgage on my own house to pay for the new proposed rental house that I wish to buy thus owning it out right. Would the interest payments on my own house then be able to offset any rental income of the rented house as the money would have come from there.
If so can you advise me how to show this in any tax returns I need to fill.
I have been advised that this can be done with some estate agents if I had the right accountant but when I when to arrange the mortgage I was told that its not. Your help will be much obliged.

Yogesh - Saturday, August 20th, 2011

If I buy fridge and Sofa for my rental property, Can I claim as expense from my rental income ?

ben - Saturday, August 20th, 2011

hello,

I have nearly completed my build on a new house. It is my only property and I would like to rent it or sell it without paying capital gains tax. Is this possible?

Thank you

chris - Monday, August 22nd, 2011

hi my mother signed her house over to me & my 2 sisters 4 years ago, should we be charging her rent? if so what is the minimum we can charge her thx

sara - Tuesday, August 23rd, 2011

I am in the process of finding a tenant for a shop I have been running (with little to no profit) for the past 4 years. Assuming I find a tenant are we allowed to name our children as landlords in order to use their tax allowances?

Patrick - Friday, August 26th, 2011

I had a property to let and prior to letting it (i was looking for another property to live in) i replaced the boiler to make the property more attractive to let, however this was about 3 months before a let was agreed and about 5 months before the tenant actually moved in, am i able to offset any of that cost?
Thanks
Patrick

Tax Fix - Friday, August 26th, 2011

@Patrick

You can claim the cost of repairs and maintenance to a property as a tax expense, but remember that you can’t claim for improvements. I would imagine that a new boiler could be considered repairs/maintenance.

So, you should be able to claim the cost of the new boiler as a tax expense when you’re completing your tax return for the relevant tax year.

Patrick - Friday, August 26th, 2011

Many thanks for the reply.
My problem comes in that the boiler was fitted late in the 08-09 tax year but the tenancy commenced at the start of the 09-10 tax year – would this mean i could not claim?

Bev - Saturday, August 27th, 2011

I have lived in the US for the last 10 years. I have a house in the UK which was my main residence and have been letting it since leaving. I may want to sell the property – how can I avoid capital gains tax?

w walshe - Saturday, August 27th, 2011

why does the taxman want to know if my income is less than 30k

Mrs D Gray - Sunday, August 28th, 2011

I rent out a property and was wondering if i could put all profit from rent back into the mortgage and not need to pay any tax!.thanks

Aaron Davies - Monday, August 29th, 2011

Can I offset remortgage costs of my rented 2nd property against my annual tax return or against any capital gains tax when I sell the property?

matthew - Monday, August 29th, 2011

If I have a repayment mortgage must I pay tax on the capital payments portion ?

mp - Wednesday, August 31st, 2011

I am finishing a new build and I am about to apply for a VAT refund for building materials (tiles and windows).

Because of personal circumstances I have to work abroad for another 2 years before moving into the property. I am therefore considering renting out the house for 2 years. As I may generate income from the property and will not move in immendiately am I still entitled to request a VAT refund?

Karen - Thursday, September 1st, 2011

After paying my mortgage and landlord’s insurance I make a profit of roughly £12 a month. Have had other expenses like paint, furnishings etc on top of that. Do I need to fill in tax return or contact local tax office to adjust tax code? Are there pros and cons to this? Thank you.

B K - Thursday, September 1st, 2011

If parents are high tax payers and have a property to rent, can they include their siblings(over 17 years old) to the rental agreement so as to minimise the tax.
The parents and the sibling divide the income in threefold, and the sibling does not pay as much as tax as parents

Can this be done

Gareth Whipps - Friday, September 2nd, 2011

At present the income from my rented property is paid on my tax return. The house is jointly owned and the rent is paid into our joint account. Is its possible for the rent from the property to be taxed under my wife instead of me as she only has a part time job. Many thanks

Roger - Sunday, September 4th, 2011

I recently spent c.£18,000 on refurbishing a house. The rental profit on the house is approx £3500 per annum – does this mean I will not need to pay any tax for the next 5 or 6 years up to the point when the total profit exceeds the original outlay? Also can I claim for new windows, doors, carpets, lino, curtains etc..

Avila - Tuesday, September 6th, 2011

I am thinking of renting a property I own via a renting management agent. However the management agent stated that the rent could be paid into a Business account as well. As I also have a consultancy business, what would be the advantage of putting the rent through business books? And is this allowable?.

sue - Thursday, September 8th, 2011

I rented out a property and have now sold it and bought a home for my sole place of residence will I have to pay tax on this.

darren - Monday, September 12th, 2011

I have two rental properties which both have mortgages on them. Do I have to pay tax, if the rent I am charging is the same as the mortgage payments ?

Joshi  - Monday, September 12th, 2011

I bought a house under my name for my daughter who is paying the mortgage but she now wants to rent it out and she will receive the income – who needs to declare this to the tax office, me or my daughter? Thanks

Neil - Tuesday, September 13th, 2011

My wife and I rent a property we jointly own as we have moved to a new area and aren’t in a position to buy here yet. For tax purposes, I understand that the rental income will be treated as split evenly (50/50) between us.

However, I pay all the bills related to our rental property, albeit via a joint account. The only deposits into that joint account come from my salary. So … can I claim all of the mortgage interest expenses, since I’m paying the mortgage?

My wife works part time but does not pay towards the mortgage or any other bills related to the house.

Thanks – Neil

Lindsay - Tuesday, September 13th, 2011

Hi
I am planning to buy a house soon. The house and mortgage will be in my sole name. However, my parter of 4 years will be living me and will contribute towards the mortgage repayments and other outlays. I assume this does not count as rental income that will have to be declared to HMRC, but could you please confirm? Thanks

Tony Clark - Thursday, September 15th, 2011

Hi my wife and her sister rent a flat left to her by her mother over a year ago. The rent amounts to 425.00 per month. My wife done her own tax return and was advised that from her share of rent £2500 she was due the tax man £800.00 as she had gone over the threshold. My wife works part time with victim support and also does some counselling work in addition. I find this an excessive amount to be due as the share is only £2500.

Any suggestions?

JJ - Monday, September 19th, 2011

i have had a 2nd home for 5 years which has been rented
I have now made it my main residence for the past 6 months
Will I have any capital gains tax to pay if I sell it??

antony  - Monday, September 19th, 2011

I make a loss on my rental as the mortgage is far greater than the rent. Can I offset this against all my income and am therefore liable for a tax rebate?? Long shot I know but I wondered!!!

Shan - Wednesday, September 21st, 2011

I inherited my mothers house when she died last year and have decided to rent it out. The rental income would put me into the higher tax bracket, my husband does not work he just receives a pension of around £7k per year. Is it possible to add his name to the house deeds and then split the rental income and tax between us. Probate has been granted but I havent registered it in my name with the land registry yet.

karen - Sunday, September 25th, 2011

Can we use a property we own, as our main residence if it is subject to a buy to let mortgage?

Patsi - Tuesday, September 27th, 2011

Hi,

I have rented out my house which I lived in for 10 years. I then bought another house where I now live. I have been told that if it were my main residence that there would be no tax payable in the first two years. Would this advice be correct. Thanks

phillip short - Sunday, October 2nd, 2011

hello tax fix,

won 50k 2 yrs ago on the horses and bought the house i now live in morgage free.

i lost my job last yr but have not claimed any job seekers / benefit since then, but savings were now low.

last month i luckily won 55k again on the horses and bought a small house, currently doing it up to rent out. i dont claim any benefit still + i still dont work, and suppose just drifting along, but can you please help me understand where i stand on this rental income. After agency fee’s etc iv been told to expect about 350pcm.

Birdy - Monday, October 3rd, 2011

I am a top rate tax payer but my wife does not work. I am being relocated overseas and plan to let our home while we are gone. Can we let the property in my wife’s name – and that way because she has no other income we can utilise her personal allowance and lower tax rate. The mortgage for the property is in both our names.

Janet Wood - Tuesday, October 4th, 2011

I have been renting my home for 2 years and have now moved back into it. Can I claim the costs of reinstating the house to its former condition before tenants against my property rental income for the year.

Thanks

DAN - Friday, October 7th, 2011

The property was let for the first time in June this year 2011 when do I need to complete a tax return as I won’t have received a full years rental until June2012. I had windows replaced as to double glazed as frames had gone and have since had to have decoration done as flat was in a very poor condition, I was resident there up until it was let.

Appreciate your advice

Dan Scott - Friday, October 7th, 2011

FIRST RENTAL IN JUNE 2011, When does return need to be completed, had to have new windows replaced in April 2011 as glazing had gone and was letting in cold so had double glazed can and when do I claim for this?

Amanda - Friday, October 7th, 2011

is there a limit on the wages you can pay yourself if you are managing the property yourself and undertaking the repairs? (This income would obviously have to be declared on my personal tax return)

Indu - Monday, October 10th, 2011

Put the property for rent in october, property was empty for two months.tenants moved in december.how many months of mortgage relief can i claim..?

Anon - Wednesday, October 12th, 2011

I am a self employed, my wife and I have 3 flats that are rented out ,I own one that I rent out and my wife owns one that she rents out and we jointly rent out the other,could I put all three rental incomes on my tax return,she is p.a.y.t part time

Miss c - Thursday, October 13th, 2011

My mortgage on rented property is interest only mortgage does this mean that I will only be taxable on what is left over which is only £100?

ft - Friday, October 14th, 2011

I am letting my flat out and before expenses I make less than £15,000. If I were to use my total rental income to make over payments on my repayment mortgage would this mean that I don’t have to pay any income tax?

Tracy Guest - Monday, October 17th, 2011

Can the initial deposit paid to purchase a property count as an operating loss and carried forward to offset future profits?

Rosie W - Wednesday, October 19th, 2011

My partner and I have recently got married. He’s semi retired and I am a 40% tax payer. For tax purposes we’ve always split the rental income 50-50 on the two BTL flats we have. They are currently both in both our names. Now that we’re married can we nominate him as the sole recipient of the rent? If not, what are the cost implications of transferring them both to his name to avoid paying the 40% tax I currently have to pay on my 50%?

Pradeep - Sunday, October 23rd, 2011

I own a property solely on my name. Can my parents rent it out and get the full rental in their bank account? Do I need to pay any tax on such rental income that is going to my parents bank account?

Anonymous - Sunday, October 30th, 2011

I am considering buying a UK investment property with Overseas funds. I am a UK citizen, resident overseas. I unfortunately have a small amount of UK bad credit as I left the country with a minor default. I know i’ll be required to lodge a UK tax return relating to the property – will this link to the UK tax office link my current financial situation to former defaults?

thanks

Tiff - Monday, October 31st, 2011

If I buy a second house that requires significant work to be done on it before it is habitable, does/can the two-year period for being able to elect it as my principal primary residence begin from the date of purchase or from the date it becomes habitable?

katie - Monday, October 31st, 2011

My husband and I are thinking of buying a house for my daughter to live in. Her husband has left her with a small child and the house they own is in negative equity so when they sell they will be left with taking on a large loan each to cover the shortfall. We will be using all our savings and want to know if when my daughter has paid off her loan and she starts to pay us towards the house we have bought will we have to pay tax on this money. We would not ask her to pay more than we have lost in interest on our savings. Any financial arrangement will be on an informal basis.

Anonymous - Tuesday, November 1st, 2011

Hi there, we have moved out of our house five years ago (lived there for 16 years) and changed the mortgage to buy to let. It is rented and we want to sell it. If we move back to the house for a period of time then do we still need to pay CG tax and what would be that period of time??
Also there is no income tax payable as the expenses are in excess of the rent therefore we didn’t let the tax office know, many thanks

Deb - Wednesday, November 2nd, 2011

Hi
My husband and I have a property we let out – it is in joint names. I have been made redundant so to use all my tax allowance would it be better to transfer ownership into 99% my name and 1% my husbands (land reg form?)and fill in relevant form for HMRC (17?) confirming OR is it just better to have the interest paid into an account in my name only to save all that bother. If I get a job in the meantime I am reading from your site that it is more difficult transferring back to 50/50. Thank you very much for your help.

Cheryl - Wednesday, November 16th, 2011

Help needed…I live with my husband in a house and the mortgage and deeds are in my name and i pay the bills. I fit into the 40% tax bracket for my salary. My huband works also but is on a low income.

I also have a flat that i pay the mortgage and am named on the deeds. Currently the income i get from the property comes into my account and i complete the tax return. My husband actually does the repairs and looks after the flat but he is not named anywhere. Can i put the income from the flat into his account direct from the tenants so he can continue to manage everything? If i do this, can he then complete the tax return against himself so we do not have to pay the 40% rate as even his wages and the income will not hit this level? Thanks

Dave - Wednesday, November 16th, 2011

I have an idea for what expenses I can claim for on my rental property. But when the property is vacant between tenants can I still claim expenses such as the interest on the mortgage that I am paying while the property is vacant?

Em - Saturday, November 19th, 2011

My husband works, I don’t. I am non-taxpayer. Our mortgage is in joint names. We are going to rent out our house, can I the rental agreement up in my name only so that the rental income falls only to me for taxation.

sandie - Thursday, November 24th, 2011

am looking to buy a house and am at present living rent free in a house owned by a relative and paying running costs only. Is this permissible and is there a limited length of time that this is acceptable ?

AMG - Saturday, November 26th, 2011

Can you help me please

1. If I have taken a loan from a relative on an informal basis, but paying interest and repayments regularly, can I claim interest as expenses against rental income

2. For work done by me on rental properties, both admin and actual repairs, can I make a charge for my time and would I need to declare myself self-employed to do this?

Thankyou

Steve Goswell - Monday, November 28th, 2011

I want my daughter to act as agent for my property rental and would like to pay her 25% the rental income.

Will the tax man accept this?

Mr A  - Monday, November 28th, 2011

I am a gay guy I have my own house and recently bought a second house which I allow my boy friend to live in I pay the mortgage he pays the bills. I take no rental at present he does not contribute to the mortgage hopefully next year we will get a joint mortgage though. Am i LIABLE IN ANY WAY FOR TAX OR IS HE do I need to declare the position to the tax man?

Emma Turner - Wednesday, November 30th, 2011

Hi,

My husband and I own two properties, one we have submitted tax returns for since we purchased, but the other one we bought didn’t earn enough for us to do a tax return until this month as our interest only mortgage payments have now significantly reduced due to us coming to the end of our fixed term. But, we did install central heating in this property this year which cost us £3,500.00. We will be sent the short tax return form to complete soon, can I put both properties on one form and claim the central heating against the profit made against both properties? Help!!

Gill - Thursday, December 1st, 2011

We have purchased a 2nd house (cash) and intend to allow our daughter and her children to live in it rent free. We have agreed that she will pay all electric/gas and water bills and the council tax. We have also agreed that any maintenance or repairs will be paid for by our daughter.
Will we need to inform HM Revenue or are there any legal implications re the above

Samantha - Thursday, December 1st, 2011

Hi

I did my first Tax Return last year, having commenced renting my property out in November 2009. Stupidly I was unaware of the 10% wear and tear (my property is fully furnished) and thus didn’t claim.

Can I claim this on my 2010/11 Tax Return?

Also I had windows replaced due to rotten wooden frames allowing water ingress damaging mine and the flat below. Can I claim for this expenditure, and if so what percentage?

Thanks.

K.-F. Marwan - Saturday, December 3rd, 2011

Must a tenant living in a house without paying rent submit a tax return, and if yes, what amount has to be stated?

David James - Sunday, December 4th, 2011

I am married and am letting out my main house for about a year. Rental income will be 7800 approx before deducting letting agent fees. The house is in my name only. Can my wife and I include 1/2 each of the rental income on tax returns? Or do I need to get her name on the title deeds?

Anon - Monday, December 5th, 2011

Hi, I rent out my flat (which is in negative equity so I cannot sell it). My rent is £100 less than my mortage currently and in addition to that i have to pay £250 a year in Ground rent and £990 a year on service charge, so i am losing each year. Can i get any tax deductions or the like? Many thanks.

Arthur - Tuesday, December 6th, 2011

Recently bought an apt in London and plan to rent that out. We will get a mortgage in financing the place , however for the interest expense fot tax deduction filing in the UK, does it make a difference if I apply the mortgage loan overseas ( here in my home town Hong Kong ) other than a bank in the UK? Your professional comment is highly appreciated.

Natalie - Friday, December 9th, 2011

I have a rental property and have recently bought the freehold. Am I able to claim the cost of the freehold or the legal fees associated with it as an allowable expense for tax?

mandydboss - Friday, December 9th, 2011

my husband and I have been letting our flat out for 3 years now, we previously lived there ourselves for almost 10 years, will we be liable for capital gains tax, if we decided to sell. We paid £39000 for the flat from the local council, we have a mortgage for £73000, which will need to paid of using funds from the sale.
Also if we decided to continue with letting the flat, can we offset capital payments on our buy to let mortgage, we are looking at trying to reduce the amount we owe, we have just come out of a fixed rate mortgage onto base rate plus 2.5% (3%) so nice big drop in mortgage payments.
any help would be brill.
Thanks

Neil - Saturday, December 10th, 2011

My father gave my a gift some 6 yrs ago to buy a house which I did. I now wish to sell the house. My mother is also on the deeds of my house, as they wanted to ensure it would not go to the state if I died (I’m not married and have no kids). she and my father live in REP of Ireland but bought a holiday home in UK last year. as my mother effecteively now has her name on 2 houses in the UK, despite not being a UK resident will she have to pay tax if I sell the house I live in/own?

dan - Tuesday, December 13th, 2011

hi, i am thinking about renting my current property and buying a new property to live in. i earn just over 17,000 salary and would not be making over £2500 profit off the rental. how would this effect my tax credits?

T Lonergan - Wednesday, December 14th, 2011

If letting a property does HMRC set an annual amount that you can receive before paying income tax?

T0NY - Tuesday, December 20th, 2011

I have a property let on an AST. I took a deposit equal to 1 month’s rent and paid this to the DPS. Should I record this as both income and an expense on my SA Tax Return?

Andy - Wednesday, December 21st, 2011

I have lived overseas with my wife for 9 years. I have never registered as being out of the country and just didn’t get round to it – stupid i know!!
Since i have left we have rented our small house through an agency but the rental costs do not cover the mortgage payments.
I want to come clean and get this straight – where do i start?

Tony - Friday, December 23rd, 2011

Hi, I renovated a property which took 17 months from April 2009 until Aug 2010. I rented the property out in Aug 2010 and am currently filling in my tax return for 2010/2011. I spend about £30,000 of expenses on the property. I know I can use the repair/maintenance expenditure for 2010/2011 against income but can I use the 2009/2010 repair/maintenance expenditure during which period i received no income?

Back in 2009 I asked the IR if I could, and they couldnt answer the question.

Thanks in advance.

Neil R - Edinburgh - Wednesday, December 28th, 2011

We are letting house which my wife has owned for some years and which we have not occupied since April. Our tenant moved in early December. In the intervening the house was habitable but not easily let as it needed redecorated, previously laid flooring etc tidied up, minor wiring works done and smoke alarms plus CO alarm installed. We know we can offset all the PIR,PAT & gas safety certificate costs against tax but how about the cost of decoration etc – total cost including certificates etc was around £2000.
Grateful for any advice offered.

Andy B - Wednesday, December 28th, 2011

I borrowed on my main mortgage for the deposit on a buy to let can I claim the interest on this as an expense. Also I pay 40% tax but my wife is not working and we split the income can we split the tax?

tony chifubu - Wednesday, December 28th, 2011

Is it possible to transfer the rental income on a property in my name to my wife?

luke - Tuesday, January 3rd, 2012

my grandad owns his own property and wishes to rent my old room out how would this effect his pension

Paul L - Wednesday, January 4th, 2012

I own a company of which has decent assets.
Due to a seperation i need to buy a house but do not have any cash at the moment and wife unwilling to release any in our current property.
Can I buy the house through the company and me live in it..???
Whats the pitfalls or liabilities

Tamsin - Thursday, January 5th, 2012

I first rented out my flat in tax year 2010/11, but have expenses relating to the rental (estate agent fees and maintenance work to get the flat rentable) from tax year 2009/10. I had no rental income in 2009/10 so did not complete a self-assessment and therefore have no tax loss to carry forwards. Am I able to use the expenses in tax year 2010/11?

New landlord - Friday, January 6th, 2012

I have recently started renting out a residential property through a letting agent. I have been told that because I use a letting agent, I cannot claim any travel costs between my home and the let property (which apparently I could have done if I managed it myself). Is this correct? and if I later decide to manage it myself how do I claim travel costs, is it by claiming the mileage rates (40p per mile or whatever it is)?

bettie williamson - Saturday, January 7th, 2012

if i sold some rental land how much tax would i have to pay on 15.000

bettie williamson - Saturday, January 7th, 2012

if i sold some rental land how much tax would i have to pay on 15.000

tony - Sunday, January 8th, 2012

Our house is rented, and we live in a flat which my wife has use of as a condition of her job. She pays council tax at a rate of 50%, because of this and because the council tax is paid in full on our house – my question is: – to continue getting the 50% reduction, does it matter who pays the council tax on our house, as long as it is paid? (i.e if the tenant pays the council tax,as distinct from us paying it, should my wife still get the 50% reduction??)

Don - Sunday, January 8th, 2012

If we own a property and it is in joint names, then decide to let does the tax income have to be divided 50% each or could it go all in one name if one of us is not working?

derek france - Sunday, January 8th, 2012

Can I delay claiming for a new bathroom on my buy to let property until the next tax year?

Richard Gates - Monday, January 9th, 2012

In the UK what is the definition of a prime residence. Do I need to be living in one of the two properties I own?

RJD - Tuesday, January 10th, 2012

Hello,

I am hoping you can give me some guidance.

I have 6No Rented Properties which are a sideline hobby/future pension plan, they are on repayment mortgages. I also work full time as an employee and i am in the 40% tax bracket. I use an accountant.

When i started in the rental game i was always under the impression that you got taxed on the difference between your rental income and your mortgage payment (ex £450 rental income £400 Mortgage payment = £50 profit???) so if your rental income was less than your mortgage payment that was a loss.

2009/2010 I payed £611.00 Tax on the properties.
2010/2011 I have had a Tax Bill for £5368.00 and have to pay 2No further upfront payments throughout 2012. Which has litterally blown me away! and a figure you could not budget for from the previous year.

Is my accountant doing this correctly? They are adding my rental income ontop of my salary and i am being taxed 40% on the lot?

The way i am looking at it is if i did not have my full time job the rental “business” would be making a loss as i have to add to the mortgage payments which comes from my salary.

Is there a better more “creative” way of having this sideline rental hobby? As i am struggling to see the point of this plan at the moment.

Thanking you in advance.

Rebecca - Tuesday, January 10th, 2012

I am thinking of renting out my primary residence for a while and paying rent to live elsewhere as this will work out cheaper for me. Can I still call my house my primary residence. I have lived there since October 2007.

anne - Thursday, January 12th, 2012

i want to rent a flat i own. the rent will be the same as my mortgage repayments (which includes repayment and interest- not just interest only mortgage) for the flat therefore making zero profit overall. i will let inland revenue know but will the repayment part for the mortgage cout towards the ‘expenses’ claim on the tax form or is it only the interest part of mortgage repayment that counts?

derek - Thursday, January 12th, 2012

i now own a flat jointly with my fathr (that was previously passed on to him whilst his mother was still alive). it is now jointly in our names. my father rents the flat out and recieves all the rent. he claims tax on this. i do not recieve any money from the flat nor pay for its upkeep. do i have to fill in a tax form too?

Claire - Friday, January 13th, 2012

I have a rental property that I rented from 8th April 2011. It was vacant before this while we were trying to find a tenant and there were several maintenance costs? Can I offset the expenses from before a tennant moved in against the income for 2011 – 2012? Do I need to declare these expenses anywhere this year?

stuart - Sunday, January 15th, 2012

hi, i rented my house out in july 2011, i have registered to do a self assesment on line, do i have to fill this in now or next year?

Katharine - Tuesday, January 17th, 2012

I have an offset mortgage on a property I’m now renting out. Can I offset the gross interest as allowable expenses against rental income,
Or should I deduct the credit I get for my offset savings first? Thanks.

Jas - Tuesday, January 17th, 2012

i borrowed money from my parents to buy a rental property. do i have to pay student loan payment on the profit. my employed income is for 2010-11 is £20,939 and for 2011-12 will be around £30k. When completing my tax return online it appears student loan is only being deducted when i make more than approx £1850 in rental profit.

Chris - Tuesday, January 17th, 2012

I live in one property and rent out a second. After deducting the mortgage interest and any allowable expenses my profit for the year is around £8400 from the second property. Due to the capital gains allowance for the year being £10,000 or so, would I not have to pay any tax at all on this profit or is some of that allowance used up in my normal salary income?

Craig - Tuesday, January 17th, 2012

is the purchase cost of a buy-to-let mortgage an allowable expense on a let property?

Tracey Tibbitts - Tuesday, January 17th, 2012

If I am renting my property to my son do I have to collect a deposit?

taxreturn - Wednesday, January 18th, 2012

When completing a tax return due to rental income from property -when adding allowable expenses incurred solely related to the property -does include the full cost of expenses including vat? or do you provide the net cost only (without vat)?

Lastly, are losses carried over from year to year?

Thank you

Rob - Wednesday, January 18th, 2012

I earn 700 pounds a month from renting my house. Can I claim tax credits and if so how many hours work (as a landlord)do you put down per week?

Dan - Thursday, January 19th, 2012

I rent a property out. The mortgage I have on that property is interest only. For the purposes of my tax return is it correct to include all of that cost in the return as an allowable expense?

Robert - Thursday, January 19th, 2012

I inherited a house which is my name. The rent is payed into joint account. I am on high rate tax. Can my wife claim the revenue as lower tax payer

damy - Saturday, January 21st, 2012

hi i have just bought a house to live myself but apparently i will have to move out of the town to another town due to job and i will have to rent my house. i myself will be living in a rented house. do i need to declare the rent received as an income and is it taxable? thanks

Si - Saturday, January 21st, 2012

Hey. This may sound bad but totally didn’t realise when me and wife. Now x wife changed mortgage in 2007 to btl and bought another place to live in. We are divorced and she is living in 2nd home with new partner. I rent myself and it was agreed she had 1 house I got the other. My name is solely on the landlord but both on deeds. Is she entitled to half even though I’m on as landlord only. Also what would be penalties and likely tax to pay on a rented thousand pound a month place. Need to get advice as we are now doing the divorce money bit and houses are being put in pot. Thank you in advance. Si

Diane - Saturday, January 21st, 2012

Does anyone know if you can let a property to family?

G Clark - Saturday, January 21st, 2012

My wife and I jointly own a flat which we rent. She is a lower rate taxpayer. Do I have to divide rental income/profit equally or can I agree that she receives say 99% . If so presumably she would also have to receive the profit in an account in her name. Should I record this in a partnership or other type of agreement.

jill - Saturday, January 21st, 2012

I am 16 and want to move out of my mums house when turn 17 I’m going to further education and want to know will she still get maintence money even though I am not living with her.

Allen A - Monday, January 23rd, 2012

I am going through my income/ expenses for my nuy to rent and the balance is approx

jo - Thursday, January 26th, 2012

I work full time and pay tax on my wage but I also have a property that I rent out. However by the time i have paid for the morgage and for jobs like the boiler and electricity to be changed and serviced i have actually lost money on the house. Can I claim any tax back from my normal wage?

Pat Millar - Thursday, January 26th, 2012

I have jjust started renting out my house (Jan 2012). I presume I have to fill out a self assessment tax form but when do I have to do this?

Steve - Friday, January 27th, 2012

I am currently living in Army Quarters, but have bought a house in which I am having to now let for a year before I can move in. I have been told different stories about tax returns. Some have said I have to fill one in and others are saying that I don’t have to because the Married quarters are tempory accommodation. which one is true?
Thank you

Kev - Sunday, January 29th, 2012

5 years ago my father died and left half of his and mums estate to me. I used this money to buy a house that my mother lives in. I charge her a rent for the house which I pay income tax. What if any would be the consequences of letting her live in the house rent free

Chris - Sunday, January 29th, 2012

I have recently inherited a property which I intend to rent out. Can I transfer ownereship of the property to one of my children who is a student and does not pay tax or to my wife who is a standard rate tax payer.

lawrence - Monday, January 30th, 2012

if EU person buy a home to rent no morgage attached. Does he have to apy tax and if yes how much?

Anonymous 101 - Monday, January 30th, 2012

I bought a flat in 2003, in 2007 I increased the mortgage to purchase a separate buy to let. In 2008 I moved from the property and rented it out. I have since (Dec 2010) sold the property and wonder if I will have to pay CGT? If so, on what figure – original purchase price or profit made since increasing mortgage?

Lord Greene Land - Tuesday, January 31st, 2012

Hi.

I have started letting my property. Can you tell me please if I am able to claim the mortgage interest I have incurred as an expense for the 4 years I have lived there prior to letting.
I also purchased a share of the freehold for the property for £5000 and own this jointly with the other 3 flats. Will I be able to claim this as an expense.

Many thanks, LGL

peter - Tuesday, January 31st, 2012

If I share the rent 50:50 do I also have to share the expenses 50:50 or can I attribute them differently? (I pay higher rate tax but my wife does not)

imz - Wednesday, February 1st, 2012

I have portfolio of 4 properties with all of them having a buy to let mortgages. The rental income barley covers the mortgage repayments. Aim I still required to pay any tax.

Cheers

Phil M - Thursday, February 2nd, 2012

I have a second property which has a mortgage greater than my rental income, the mortgage is part repayment, part endowment. Will I pay tax on the rental income even though I make NO profit

Steve - Saturday, February 4th, 2012

I have recently rented out my mum’s house. In order to make it habitable I had to get someone to renew the roof. Can I claim this and the guttering etc against my 2012 tax return?

Cheers

Joe - Monday, February 6th, 2012

Hi,
We have 2 properties rented out, last year we added a third property which needed some work to make habital. The intention was to repair it and rent it out for 6 months to a year and then move in ourselves. Unfortunately the work has increased and taken longer than anticipated to complete and we may be unable to find a tenant who would want to rent for 3 months. The question is, can we still claim tax relief on interest and the maintenance work etc?? Any advice apreciatted. Thanks, Joe

Caroline D - Monday, February 6th, 2012

Hi. I bought a BTL property end March 2011. I purchased this outright using an increased amount against my residential mortgage. Can I offset these monthly payments against any profit?

joe - Monday, February 6th, 2012

got tax code fixed, why have i not got the tax i overpaid back??

Darren - Tuesday, February 7th, 2012

I have had a rental flat for 5 years and the value has gone up £100k in the time. I moved back in 6 months ago and it is now my main residence. I have now bought the flat next door and am knocking through to make one large flat as my main residence for at least the next 5 years. Do I have ever have liability for CGT on the time it was a rental?

ashok - Tuesday, February 7th, 2012

I am living in house with my friend,that is on mortgage with 50/50 share .Now he wants move out and going to put on rent .I don’want any body else come in my house.Is it leggally he can do or not.

john hart - Wednesday, February 8th, 2012

Hi,

My wife owns a house in her sole name, before she sells could see gift me 50% of the property to enable my CGT allowance to used aswell as hers

john - Saturday, February 11th, 2012

hi i have a rental property which is just about covering itself payment wise but if i decide to live in it as my wife and i may be seperating does this mean i would then be classed as the inhabitant and would it cancel capitol gain tax if i decide to sell in the future??

Carol E - Monday, February 13th, 2012

We have just submitted our first self assessment as we have a house we let for holiday hire in UK.
Total income was just over £20,000, but total expenditure was just over £50,000, broken down to £24,000 actual expenses and the remainder was repair of the swimming pool damaged by early residents. So, theoretically, even not including the repair, we still made a loss, which is fine, for it is small enough for us to keep the house rather than sell it. This was divided between my husband and I, so my liability was £10,000 income and £12,000 expenditure.However, I have now received a tax coding notice stating HMRC they will include forecast £10,000 income from property, thereby wiping out my tax allowance from my work and charging me nearly £250 per month tax!! It seems they are not including expenditure, therefore treating income as net income! Surely this is not right? If it is, why does anyone hire their homes, and we will have to get rid of ours!!!

Jo - Monday, February 13th, 2012

Hi
I am considering buying a second flat as a buy to let. Have 2 questions on this.
1. I have a mortgage on my first flat – would it make sense to decrease this mortgage and take a higher mortgage on the second property so I can write off interest?
2. My partner doesnt work. Would it make more sense for him to receive rental payments, since he doesnt pay tax. For this, does he need to co-own or fully own the property?

john s - Monday, February 13th, 2012

if i move into my rented house to live can i over come the capitol gains tax after a time?

Brian M W - Tuesday, February 14th, 2012

I recently inherited a property after my parents, (approximate value £160k), and being aged 60, I decided to take early retirement, and renovate the property with the intention of renting it to my son. My personal pension is £5,800. My wife is still working, and has a salary before tax of approximatly £36k PA. We were going to rent the property to my son and his fiance’e for £4,000 PA, on a rent to buy basis, at a concessionary price; using the income to boost our pensions, and allowing my son to purchase a property that he would otherwise be unable to afford. It has been suggested by friends who own several properties, and are more versed in these matters than us, that it may be better for tax purposes to seperate the rent into two seperate payments, one to my wife of £2,500 and the other to me of £1,500. This would keep my income below the £7.5k tax level for retired persons under 65 year’s, and the £2,500 paid to my wife should not affect her working tax allowance? Are they on the right track with this suggestion?

georgie m - Wednesday, February 15th, 2012

Hi, we are thinking of buying a flat to rent out (and future retirement), we will raise the money through re-mortgaging our family home. Are we able to claim the interest payments back against taxable income on new rental property?

Many thanks

Rod Crisp - Wednesday, February 15th, 2012

My wife and i jointly own a property that we are about to let. On our self assessment tax returns should we show equally, rental income and allowable expenditure?

unsure - Sunday, February 19th, 2012

I have a second property and would like to help some friends out by allowing them to live rent free in that property.

A) can I do this?
B) if so, how long for?
C) Is it legal?

steve - Wednesday, February 22nd, 2012

I have just purchased 7 dehumidifiers for 7 of my houses i rent out, am i able to get tax back on them or not?

steve - Thursday, February 23rd, 2012

If my wife owns a house can she let that house to my employer for me to live in?

Tangoe - Friday, February 24th, 2012

Hi TaxFix,

I bought a property many years ago, which I am now renting out. It is also now freehold. I want to remortgage it in order to help my daughter buy a house. I bought the property in my sole name, however I now want to have it in both mine and my wifes name. Is it possible to reducde our tax liability by offsetting expenses after the remortgage?

Anonymous - Friday, February 24th, 2012

My husband is a higher tax payer and rents out a mortgage free property. I am a lower tax payer – is there a way we can transfer the property on my name to save on the tax we pay end of each financial year?

gill smith - Friday, February 24th, 2012

are there any tax implications i should be aware of if i buy a house for a family member to live in rent free?

gary weston - Tuesday, February 28th, 2012

I have sold an annex which i purchased back in 1989 along with my current house as 1 plot. Do i have to pay capital gains on the sale of the annex, as i purchased them as 1 back in 1989? Can i use the money as a deposit on another property without having to pay capital gains?

James - Monday, March 5th, 2012

we are thinking of purchasing a second property as buy to let. Our mortgage is around £100 less than the rental charge per month therefore can we claim all the mortgage costs back?

debbie - Monday, March 5th, 2012

we are buying a house cash for our daughter and her partner to rent off us .Will we be able to do this

Arthur - Tuesday, March 6th, 2012

My elderley Aunt is having to go into sheltered accomdation, if we rent her house out can we offset the rent she is payiing aginst the rent she is receiving? Or is there some legal way to reduce tax liability on the rent she receives, bearing in mind she is moving on health grounds?

Clare - Wednesday, March 7th, 2012

hi may sound like daft question, i currently have 1 bed flat on market if I rent it out till it’s sold will I pay tax on income from flat or will taxman add those earnings to current income from my job Which is 39k? I was lead to believe thst it would be seperate income and charged at different tax rate but having read some posts I don’t think that’s the case . I’m worried that I may well go into higher tax bracket if have that on top, as any money from rent recieved will be going towards renting a larger property so I won’t see any profit anyway??
Thanks

Mark - Friday, March 16th, 2012

I am getting divorced and as a couple we have 4 properties. Two are in my wife’s name only. She has not declared the income and has not paid tax on it. Can I be held liable for the unpaid bill if/when it arrives? I am keen to tie up financials but do not want to rock the boat as investigations will reveal her non payment and the IR will become involved. I have my own income and have always paid tax through PAYE.

Mark - Friday, March 16th, 2012

hi,

My ex wife has two properties solely in her name, bought during our marriage but she has never paid income tax on them. Can i be in any way held liable for the tax bill if and when the inland revenue catches up with her?

JoJo - Wednesday, March 21st, 2012

I am in the process of buying a rental property and am raising the monies against my main residence to buy the rental property outright. My understanding is that as I do not currently have a mortgage on my main home, and the mortgage I have applied for is purely for the purpose of buying the rental property I can offset the interest element of the mortgage against the rental income I receive for the property that I am buying. However, would this situation be altered if i re-mortgages (pureley to get a better deal) when my initial interest rate expires? Also what it the situation with regards to Capital Gains Tax? Would this have been effected if I had the mortgage on my rental property rather than my home? Or can the mortgage still be offset against the potential capital gain in the future if my rental property is sold even though it is secured on my home? Is there any advantage to the way that I have set up the mortgage on my main home rather than against the rental property other than the interest rate potentially being lower on a residential mortgage as opposed to on a buy to let mortgage?

Catherine Brierley - Wednesday, March 21st, 2012

I inherited my brothers cottage worth £90,000 I have spent £50,000 on it as it was in a bad state. If I sell it will I have to pay tax on it as it cost me personally to improve it. I am 71 and live with my son.

Imran - Wednesday, March 21st, 2012

If I have a property which I don’t earn no profit from will I have to tell child tax credit department

Shirlee Beito - Friday, March 30th, 2012

If my son paid the mortgage for 10 months because my unemployment ran out, do I put this amount as rental income or other income

david mark - Saturday, April 14th, 2012

I purchased a 2nd house 4 years ago for £125,000.
It has been rented out for the first 3 years and empty for the last year whilst I have been doing work on it. I have got planning permission on the garden and have know put the house up for sale at £125,00 and the garden plot for £65,000. If i sell either the house or garden plot how is capital gains calculated. Ie if i sell the house first for what i paid and then held onto the plot.

Jeff D - Thursday, April 19th, 2012

Can you put a AST in place and then raise a mortgage on the property and offset the interest only part of the mortgage or does the mortgage need to be in place 1st?

kk - Tuesday, May 8th, 2012

can i rent my second home which has a residential mortgage and do a tax return

Caroline Mayer - Wednesday, May 9th, 2012

Can I put mortgage endowment payments against rental income?

KC - Thursday, June 7th, 2012

Hi I have a property on a buy to let mortgage interest only, I also have an unsecured loan on this property. However my question is that I have rented this property for the last six years but have not declared it. I am not making any profit from the rental income as I am having to pay money out of my own pocket to make the montly mortgage payments what should I do???

claire - Tuesday, June 19th, 2012

my husband his brother and father own a garage which is leased out they share the rent 3 ways i do not pay tax if i had our share would that stop my husband paying 40% on the small amount we get?if i could declare as mine it would save £3000 a year

Sue - Sunday, July 8th, 2012

I have taken out a remortgage on my own home (interest only) in order to buy a rental flat. Can this be offset against tax?
Thanks

Iona Caldwell - Monday, July 9th, 2012

We are living abroad for 3 years. My husband is on a British contract whilst working abroad. I am not working. We own two properties which we are renting whilst we are abroad. One of the properties is solely owned by my husband. How do we report on and pay the tax we owe in the UK for them.

Sara - Wednesday, July 25th, 2012

Hi I am about to rent my property out for £650 pm, my mortgage is interest only and by the time I include all the other expenses I pay out on it per month it equates to £647 pm. Can I include on my expenses a loan that I took out to make improvements to the property, to paint and make fit for living in? If yes then this would mean I make nothing off the flat and in fact the flat costs me £847 pm, would I still have to do a tax return?

lymby - Tuesday, August 7th, 2012

my wife and i our thinking of renting out a room in our house. im self-employed a low earner and claim carers allowance for my wife. she is on non means tested benefits.the house is in her name only. should i add the rent to my income,we would lose carers allowance.or could it go under as my wife’s income? and would she need to fill out a tax return the yearly rent would be just under 4250 UK pounds would it affect her allowances?

Steve M - Monday, September 3rd, 2012

My Mum died earlier this year and has left her house to my brother, sister and myself.

My brother and sister aren’t interested in selling the house for a few years, so are letting me rent out the house in the meantime.

As I pay tax at 40%, I’m thinking of letting my wife do all the renting, so in effect it will be her business.

Does the house need to be transferred into her name, or can you still rent it out while it remains in my Mum’s name?

clive - Tuesday, September 4th, 2012

my wife and I own two flats which we rent.Must we both fill out tax returns each,splitting the income50/50

hadih - Thursday, September 6th, 2012

Hi, I bought a house in April 2011 which I am currently receiving rental income from. However when I bought it, I had applied for a mortgage and got declined because I hadn’t been in the UK long enough :( so ended up taking a loan from a family friend, which I am paying back on a monthly basis from the rental income. Do I have to pay tax on the full rental income prior to paying back the loan or would the loan repayments be considered expenses?

Max Morton - Friday, September 7th, 2012

If I let my property but then rent another property to live in myself can I offset against the income from my own proprty

john Slack - Saturday, September 8th, 2012

my wife nad i are in business together as property developers.
Can i put more of the profit in her name for tax purposes.
We are both over 65
we already let one property but if we let another it will take me over the tax allowance

Hadi Hosn - Wednesday, September 12th, 2012

I bought a property in London around April 2011 with a loan I received from a family friend because I couldn’t get a mortgage as I wasn’t in the UK long enough.

So now, I receive regular rental income from the flat and pay off about 70% of the rental income back to the person who lent me the money, I am therefore repaying the loan – but the loan is a family loan and has not been done through a bank with the paperwork and all. I don’t have any of that.

Am I still liable to pay tax on the full rental income I receive before paying back the loan or can I file taxes only on the leftover sum after I have paid back the loan?

Any help whatsoever is greatly appreciated. Thanks a lot.

Gerry ~Q - Thursday, September 13th, 2012

I am on the deeds on my husband, brother and sister in laws rental property. I do not receive any money from the property as it goes into a joint account of my husband and his brother. Do i need to still complete a tax return on these properties if I don’t get any income from them?

H Parker - Monday, September 17th, 2012

I took out an interest only mortgage against equity in my property to buy a smaller house to retire to. Have been unable to sell my original house so with permission of the Building Society have gone to rental and am paying enhanced interest rate. My intertest only mortgage repayments are greater than rental income from tenant. What are the tax implictions for me please as will presumably need to declare next tax year. Thank you

Anonymous - Tuesday, September 18th, 2012

I am currently going through a divorce and renting out the former matrimonial home. The mortage is in joint names, however only i will receive income from the let as part of the divorce negotiations. Will my Ex be liable for tax ?

Barry - Thursday, September 20th, 2012

I have a second property that my daughter (a student) is living in at zero rent. Can she rent out the spare rooms and make use of the income and if so who is liable for any income tax. She has no other income. Can she used the rent a room scheme?

Brian - Wednesday, October 3rd, 2012

I rented my property through letting agent who is charging me 10% + VAT for management fees. Since I am busy with day job. I let my wife to deal with any issues from the letting agent.

My wife deal with phone calls/ email,getting quoatation, arrange for people to repair, sometime she travel to the property and look into the issues by herself.

She charge me a consulting fees of £300/month for phone calls and admin /dealing with letting agent.

She also reimburse from me any repairs / painting / travelling cost separately.

Please confirm if all the above is allowable for tax deduction. If not why?

Thanks
Brian

Peter Dobson - Tuesday, October 16th, 2012

I tried to sell my house to buy a Park Home. When it didn’t sell I rented it out. I took out a loan aginst my former home to pay for my park home. I have paid off all except £3,500. It is listed as a “Buy to let mortgage” on my old home. Can I claim the fees I pay aginst tax on the rental income?

jay - Wednesday, October 17th, 2012

I am looking to rent my property! I want to let the tax office know about this but im worried they will alert my mortgage company! I will not make hardly anything on the rent but if i inform the mortgage company the rates will rise? What should i do as i cant afford to pay extra just to rent

maria - Wednesday, October 31st, 2012

I set up a small business (more of a hobby) last march and only have 6 to 7 entries in my accounts for the last tax year. Do i need to compleat a tax return for this or can i add it to next years set of accounts???
Thanku

Carol - Thursday, November 8th, 2012

Hi, I own some rental properties jointly with a friend. Our children want to earn some money (15 years old). can we pay them to paint the houses and do some cleaning on change over of tenants and still claim a tax deduction? They are not tax payers. (We would pay by cheque and would be bale to see it go into their accounts etc)

Thanks

Tedd - Saturday, November 17th, 2012

We have a rental property which we have only made a profit once in the last twelve years of 1300 GBP in 2009/10.Unfortunately we didn t file any tax returns because we have been overseas for the last 6 and assumed we did not need to pay any tax.We normally privately let but have used a letting agent and they have passed us numerous amounts of paperwork which discusses NRL and the need to file etc. what should we do please? What would likely penalties be if we approached HMRC? We have not been deliberately avoiding tax, as discussed only one in twelve has made a profit!thank you

Mr williams - Thursday, November 29th, 2012

I am thinking of renting out my house that i have bought (no mortgage)
the rentable income i.e

Ivor S - Saturday, December 1st, 2012

Self Assessment: We are retired and rent a furnished room in our own home on a weekly tenancy basis that generates a few hundred pounds more than £4250pa. We also let out 2 furnished flats one in West London and one in Liverpool, each with short-hold tenancy agreements. As these are 3 essentially different “sources” of rental income; Can Rent a Room allowance be claimed for the “own home letting” in the aggregated rental income as part of the Self Assessment Property submission? All gross income from all sources is under £15k. The HMRC ‘Own Brand’ software we use no longer subtracts RARA automatically, so is it correct (if it is allowable) just to take £4250 (or £2125) off the aggregated figure before filling in the form on line? Note we always check the RARA box with an X but do not see any allowance made in the final computation Confused of Ealing!

pauline - Tuesday, January 8th, 2013

I am investigating selling my solely own main UK res and jointly buying with my partner (not married) a joint main res which has an annexe. We’d then look to rent the annexe (not to family). If the mort interest payments on the COMBINED property is more than the rent on the annexe is that okay ie no tax then due on it? Also the new house would be mainly mine (equity split 80/20). I hope that the mortg/solic can make that official. And if so I assume I’d get taxed for 80% of any tax liability on the annexe (in the event we did make a profit after expenses). I’m 40% tax payer, so not good initially but later on I might stay at home with our child for a bit so assume I’d benefit then as prob a 20% tax payer. All hypothetical but trying to get a feel before we go any further. Pauline

Ian Evans - Thursday, January 10th, 2013

Hi there,
My mother owned an ex-council house and put it in mine and my 2 brothers names about ten years ago.I decided to buy it fully and so raised £50,000 on my current property to give them £25,000 each. I now rent it out. How can I prove or show hmrc that my increased payments are to pay my brothers and so be able to claim mortgage interest as an allowance against my rental income? thanks

T Walsh - Sunday, February 10th, 2013

We currently own two properties which we let out. When we bought these properties a few years ago we increased our mortgage on the property we live in as a deposit to buy the other two properties. Each year we do our self assessment online and put down the mortgage costs for the two properties. However, our own personal mortgage is quite high as a percentage of it is for the other two properties. We have never claimed for this extra cost of our mortgage. Are we able to claim on the part that has been used for the deposits and if so, can we also claim for previous years?

JJ - Wednesday, February 27th, 2013

My wife and I are about to rent our house out, unfurnished. I earn over £50K p/a and my wife only works part time so if we were to put the tenancy agreement solely in her name will this reduce the tax payable on any profit we make.

vanessa - Sunday, March 17th, 2013

my mother has passed away, do I have to pay council tax on her empty property after 6 months if it is not sold by then.

TaxFix - Tuesday, March 19th, 2013

Vanessa: There’s no Council Tax to pay on empty and unfurnished homes for up to 6 months. After this, they may qualify for a discount of up to 50%, depending on your council. It’s up to your council to decide how much discount they give. If the owner of a house has died, Council Tax isn’t charged for up to 6 months after probate is granted (your legal right to sell the home).

Charles F-B - Friday, April 5th, 2013

Hi,
The lady that I employ part time as my bookkeeper and manager has put a proposal to me.
She wishes to live in a particular house in my portfolio; it is a big property with a very comfortable space suitable for an office and a workshop.

She propose that I allow her a contract on a peppercorn rent, in consideration that I take responsibility for her own house and what ever rent I can achieve from it. She also propose to allowed me full access and use of the office and workshop at my property.

Her property is likely to attract about the same rental value as my one would, her’s is only around 10 years old and in a very well maintained condition, I don’t envisage too much in the way of abnormal maintenance costs. It is a desirable from a tenant demand.

The gain to me of the use of the office and workshop space would really be very useful and of value to me.

My question is what tax implications might there be on each party, she has no mortgage on her place; she is currently entitled to and receives working tax credits.

1, Would the taxman view a peppercorn rent as some kind of gift to her or similar and tax her on what the full rent would be?
2, Or as she’s wont be getting the rent from her place will the taxman view this as some kind of avoidance or otherwise tax her as if she did receive market value rent?
3, If so would it also be treated as income and like wise effect her current tax credit entitlement?

4, I guess if I took a long lease on her place and then rented it out, the income and expenditure to me would be treated as normal and just the same as rent and expenses on the properties that I own.

I have heard of some tax relief being offered to landlords for types of free rent, and I know that certain types of employment like farm workers also live-in employees

Can you see any tax gains or losses to either of us if, or what guide can you give to facilitate the best achievement of something along these lines.

Regards Charles

Gareth - Saturday, May 4th, 2013

Last tax year, I moved out of my flat (which was formerly my primary residence) and rented it out. I now have to fill in a Self-Assessment for last tax year.

While I was living in the flat I had to carry out a number of repair works to the property. We replaced the windows and got a new central heating system installed. We also had to furnish the flat and buy white goods such as fridge, washing machine etc.

Are any of these items tax deductible within my Self Assessment, even though the modifications were performed and the appliances bought before I let out the property?

kelly - Wednesday, July 31st, 2013

I am having tenants moving into my property, however, the rent does not cover my mortgage and I pay rent for the accommodation that I live in now. Therefore , making a loss and no profit at all. I pay for insurance on the property and had a unsecured loan to contribute to the expense of purchasing the property. Both me and my husband works. Can you please advise me what action I need to take if any?

TaxFix - Wednesday, July 31st, 2013

kelly: Are the mortgage interest of the rental property and other allowable expenses greater than the rental income? If so then there will be no tax to pay. You might want to check to make sure you have calculated everything correctly.