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.