Rental Income for TAX ????

sendoolah

We are letting our UK house and emigrating to Australia in 3 weeks.
I'm trying to get my head round all the Inland Revenue stuff before we go and I was hoping someone could give me a little advice.

I understand that I have to declare the tax etc... but am confused as to what the rental income will be at the moment. We have a tenant moving in and the rent will cover the mortgage with a bit over for insurance and expences etc, buit I doubt there will be any profit once all that is paid.

Any help on this would be great. its all new to me and with everything else I have to do as far as emigrating is concerened these NRL1 and P85 forms are doing my brain in

Cheers

LandyAndy

sendoolah wrote: »

We are letting our UK house and emigrating to Australia in 3 weeks.
I'm trying to get my head round all the Inland Revenue stuff before we go and I was hoping someone could give me a little advice.

I understand that I have to declare the tax etc... but am confused as to what the rental income will be at the moment. We have a tenant moving in and the rent will cover the mortgage with a bit over for insurance and expences etc, buit I doubt there will be any profit once all that is paid.

Any help on this would be great. its all new to me and with everything else I have to do as far as emigrating is concerened these NRL1 and P85 forms are doing my brain in

Cheers

Remember only the interest element of your mortgage repayments is an allowable expense for tax purposes.

My advice, though, is to spend £75-£100 on consultng a local accountant and so get the latest, professional, advice. Their fee will be allowable against tax:T .

clutton_2

you will have to employ a uk=based agent by law if you are permanently residing abroad, and in certain circumstances an agent must deduct income tax directly from the rent before passing it on to you - i agree with landy - talk to an accountant otherwise you could end up paying tax where there is no need - and do find one that knows about property - it is a complex business - the tax man does not seem to know whether it is a business or an investment strategy at times.

LandyAndy

clutton wrote: »

you will have to employ a uk=based agent by law if you are permanently residing abroad, and in certain circumstances an agent must deduct income tax directly from the rent before passing it on to you - i agree with landy - talk to an accountant otherwise you could end up paying tax where there is no need - and do find one that knows about property - it is a complex business - the tax man does not seem to know whether it is a business or an investment strategy at times.

An important point.