Short term rental of house - Have to pay tax?

[Deleted User]

Since I live in Newport, I'm considering renting my house out for a few weeks during the Ryder Cup. A nice little earner it is.

How would the Inland Revenue feel about this? Would it count as income that I'd have to pay tax on?

tbs624

[quote=[Deleted User];discussion/1211543]Since I live in Newport, I'm considering renting my house out for a few weeks during the Ryder Cup. A nice little earner it is.

How would the Inland Revenue feel about this? Would it count as income that I'd have to pay tax on?[/quote] HMRC are only too aware that people do this sort of thing for the big events and yes, you would have to declare the rental income, although you can offset certain costs against it.

nomoneyleft

you would almost certainley have to tell the IR, you could however declare this income as your partners or who ever earns the least amount of money, so you don't get stung for 40% tax.

you should be able to offset some costs as well, maybe extra insurance, painting and decorating to a point, cleaning services / food etc.

I am no expert but i am sure someone here can tell us what we can right off.

poppysarah

Tell them. You'll sleep better.

tbs624

nomoneyleft wrote: »

you would almost certainley have to tell the IR,

There is no "almost certainly" about it. All property rental income must be declared to HMRC - fail to do so and you are likely to be looking at a fine.

HMRC are, as I said before, only too aware that people rent out their homes for short term events - they even chase those who rent out parking spaces on their drives for the duration.

nomoneyleft wrote: »

you could however declare this income as your partners or who ever earns the least amount of money, so you don't get stung for 40% tax.

:rolleyes:..... best not to state such things as "fact". If the property is jointly owned by a married couple/civil partners then the income derived from it has to be in direct proportion to their interest in the property. Unless the property is held as tenants in common in different proportions, and declared as such on Form 17, then the split is held by HMRC to be a straight 50/50.

Phil99999

If the property is has a morgage the rental can be placed and deducted from that. See here: http://www.accommodationfortheevent.com/rydercup/faq/

Premier_2

Phil99999 wrote: »

If the property is has a morgage ...

... you may not be allowed to let the property.

You need the lenders permission to let, and most insist it is let on an ASTA.
(unless you re-mortgage to a more expensive commercial mortgage). That will give the tenant the right, although not necessarily the obligation, to remain there for at least 6 months.