Tax on renting a property

migwella76

Hi all,

I am thinking further down the line in a year or two, but me being me, I like to have all the info to hand.

If I was to buy a property outright and then rent it out, am I able to pay the money back to myself before I pay tax.

I am working along the lines of buying a business. If I was to put a set sum into the business, then I could claim that back before I paid tax.

For example, I buy a property outright, mortgage free for say £80,000.

The rent on the property is £400 pcm.

If I was to pay myself £400 pcm it would then take 200 months before I pay tax.

Is that correct?

Thanks
Mig

Debt_Free_Chick

migwella76 wrote: »

Hi all,

I am thinking further down the line in a year or two, but me being me, I like to have all the info to hand.

If I was to buy a property outright and then rent it out, am I able to pay the money back to myself before I pay tax.

I am working along the lines of buying a business. If I was to put a set sum into the business, then I could claim that back before I paid tax.

This would only work if the business was a limited company and you lent the company money. Then, the company would be repaying the loan, but it would own any assets e.g. if the company used your loan to buy a property, you wouldn't own that property - the company would

For example, I buy a property outright, mortgage free for say £80,000.

The rent on the property is £400 pcm.

If I was to pay myself £400 pcm it would then take 200 months before I pay tax.

Is that correct?

Thanks
Mig

No - sorry.

gerby

:eek::eek::eek::eek::eek: no because you still have the value in the property