Renting House - Any minefields I need to know about?

pappadruid

Hi All,

Im after some info regarding renting out my house. All advice very gratefully recieved!!

Im in the forces and am due to move into Married Quarters very soon. I am going to rent out my house for the foreseeable future and would like some good advice about the tax side of life (or any advice!!). I would not be making any profit from the rent (mortgage £750pcm - rent £675pcm before agent fees). I dont think there will be any major tax issues, but would like to know what sort of things I need to be aware of that might cause me hassle in the future! Forewarned is forearmed!!

Any advice about Self Assessment (if necessary), claimable allowances against tax for the rented property etc would be much obliged! I also heard on the grapevine that it would be in my interest to register myself as a rental business for tax purposes.....! Any thoughts??

Thank you all!!

fengirl_2

Keep accurate records and receipts for everything you spend in relation to the house as they are all allowable against tax. Only the mortgage interest is allowable so you will need to ask your lender for a certificate of interest paid at the end of each tax year. If you are letting furnished you can claim for 10% wear and tear allowance and of course you need to take agents fees into account.

Is is a requirement that you live in married quarters? If so, then there will be no CGT liability when you come to sell.

pappadruid

Thanks for the quick reply Fengirl!! Will do as you advise!

There is no requirement for me to live in quarters - it is my decision, and my entitlement - also for financial reasons as MQ's rental is minimal (approx £250pcm!!), so would be a fool not to take advantage of it!

pappadruid

Any other advice guys?

Thanks!!