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  • FIRST POST
    • tomryan89
    • By tomryan89 3rd Oct 17, 7:27 PM
    • 44Posts
    • 20Thanks
    tomryan89
    Renting out my property
    • #1
    • 3rd Oct 17, 7:27 PM
    Renting out my property 3rd Oct 17 at 7:27 PM
    Hi - hoping someone can give some general guidance.

    We need to move for work but we are having problems selling our flat. We are thinking about renting it out and renting a property in the place we need to move to.

    Will I need to pay tax on the rental income even if I don't own another property and paying rent myself to live somewhere else?
Page 1
    • G_M
    • By G_M 3rd Oct 17, 7:28 PM
    • 41,507 Posts
    • 47,907 Thanks
    G_M
    • #2
    • 3rd Oct 17, 7:28 PM
    • #2
    • 3rd Oct 17, 7:28 PM
    Yes.

    Now read

    * New landlords: advice, information & links

    * Letting agents: how should a landlord select or sack?
    • 00ec25
    • By 00ec25 3rd Oct 17, 8:02 PM
    • 5,043 Posts
    • 4,392 Thanks
    00ec25
    • #3
    • 3rd Oct 17, 8:02 PM
    • #3
    • 3rd Oct 17, 8:02 PM
    Will I need to pay tax on the rental income
    Originally posted by tomryan89
    you will pay tax on the PROFIT. That is not the same as income. Profit = income - expenses

    even if I don't own another property and paying rent myself to live somewhere else?
    Originally posted by tomryan89
    what you spend your money on has nothing to do with the fact you have a profit ("income" if you wish) from which no income tax has been deducted
    • flashg67
    • By flashg67 3rd Oct 17, 10:50 PM
    • 2,223 Posts
    • 1,468 Thanks
    flashg67
    • #4
    • 3rd Oct 17, 10:50 PM
    • #4
    • 3rd Oct 17, 10:50 PM
    You'll also need consent to let from your mortgage provider if your current place is mortgaged
    • Tiners
    • By Tiners 4th Oct 17, 7:03 AM
    • 223 Posts
    • 220 Thanks
    Tiners
    • #5
    • 4th Oct 17, 7:03 AM
    • #5
    • 4th Oct 17, 7:03 AM
    Have you considered advertising your flat at a sensible and realistic price that will achieve a sale?
    • saajan_12
    • By saajan_12 4th Oct 17, 7:42 AM
    • 856 Posts
    • 561 Thanks
    saajan_12
    • #6
    • 4th Oct 17, 7:42 AM
    • #6
    • 4th Oct 17, 7:42 AM
    you will pay tax on the PROFIT. That is not the same as income. Profit = income - expenses
    Originally posted by 00ec25
    Yes, although be careful of what you think of as expenses - only costs directly related to the rental income from which you will not retain value count. e.g.
    • cost of repairs/maintenance during tenancies- Yes
    • lettings agent fees- Yes
    • utilities / service charges included in rent- Yes
    • Landlord association fees- Yes
    • mortgage interest- Yes
    • mortgage capital repayment portion- No
    • your own moving cost/rent payments- No
    • Crashy Time
    • By Crashy Time 4th Oct 17, 12:59 PM
    • 5,018 Posts
    • 2,163 Thanks
    Crashy Time
    • #7
    • 4th Oct 17, 12:59 PM
    • #7
    • 4th Oct 17, 12:59 PM
    https://www.alanhawkins.co.uk/news/what-is-section-24-also-known-as-the-tenant-tax.html
    • Crashy Time
    • By Crashy Time 4th Oct 17, 2:56 PM
    • 5,018 Posts
    • 2,163 Thanks
    Crashy Time
    • #8
    • 4th Oct 17, 2:56 PM
    • #8
    • 4th Oct 17, 2:56 PM
    Have you considered advertising your flat at a sensible and realistic price that will achieve a sale?
    Originally posted by Tiners

    Mmmmm...interesting theory.......
    • tlc678910
    • By tlc678910 4th Oct 17, 6:15 PM
    • 478 Posts
    • 864 Thanks
    tlc678910
    • #9
    • 4th Oct 17, 6:15 PM
    • #9
    • 4th Oct 17, 6:15 PM
    If you are higher rate tax payers (or the rent you receive pushes you into a higher income bracket) you will not be able to deduct all of your mortgage interest as an expense anymore, so look into that if it will affect you.
    Tlc
    • Kynthia
    • By Kynthia 4th Oct 17, 7:30 PM
    • 4,997 Posts
    • 6,972 Thanks
    Kynthia
    Letting property is a business activity so therefore you will be expected to behave business like. This includes declaring your income to the HMRC even if you aren't making a profit. Complying with regulations such as maintaining the property, checking your tenant, getting permission from your mortgage lender, protecting the deposit, etc. You should check the financials of going ahead, such as seeing if you can afford to have a good or a tenant who doesn't pay and takes over 6 months to evict, will you still make a profit when paying for landlord insurance, letting agent fees, repairs, etc? If after looking at all that you still feel like it's a good idea then make sure you keep up to date with all the relevant laws even if you have an agent handling things, as it doesn't abdicate your responsibility.
    Don't listen to me, I'm no expert!
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