Tax on rent income

FloraMac

I am serving in the RN and have been posted to Plymouth.
We have rented our house in the midlands as we could not sell.
The accountant informs me that tax on the rent will be calculated 50 50 with my hubby (retired serviceman) as we own the property jointly.
She also says that we cannot offset the MQs rent.
I had not other choice than to move into quarters (or move on my own and live on board and when you calculate it the cost of running the house with one in it was unpractical and costly).
Does anyone know if MQs rent can be offset or is there any info out there?
Thanks

Bernie

...and even worse, the rent you both receive is classed as unearned income. Been discussed here:

http://forums.moneysavingexpert.com/showthread.html?p=14077863

Voyager2002

At least you can offset mortgage interest, insurance and agent's fees against the rent.

Also, you can decide that one or the other of you receives the rent for tax purposes, and so make the most of a non-working partner's personal allowance. However, once you have made this choice you cannot vary it from year to year.

Sparky29

I'm in the opposite position. Got a house in Plymouth that I let out and posted to the Midlands.

No you can't offset your rent. Basically it becomes a business and you both have to do self assessment every year. Wouldn't bother paying an accountant as its not that hard to do. A bit of research into what you can and can't claim for and its the same each year.

FloraMac

Unfortunately as we own the house jointly we cannot nominate one or the other to offset the rent against so cannot utilise my husbands personal tax to the full benefit.

bargainhunter_3-2

As stated in the posts above you can still offset any costs you have in running the house - mortgage interest payments, insurance, letting agents fees and any repair or maintenance charges. If you need to do any work on the house (new carpets, new central heating system, etc.) you can offset this against the tax bill providing it is not seen as an improvement such as an extension.

There is some good advice available here:
http://www.kettering.visum.co.uk/content/content_layout.asp?ContentID=1