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Tax question on second property
*Summertime*
Posts: 68 Forumite
Hi everyone,
I hope someone can share some knowledge with me!
I have a second home in Cyprus (not as glam as it sounds) although I am proud of my achievment (I'm 27) I do sometimes wonder if I have put too much pressure on my and OH.
Anyway, my question; I pay about £500 a month to cover the mortgage, for this whole year so far I only have about £500 worth of bookings (I'm thinking with the recession, weak ££ etc people just aren't in a position to go anywhere)... do I have to declare and pay tax on the rental income even though I am far from making any profit on the apartment?
Thank you
S
I hope someone can share some knowledge with me!
I have a second home in Cyprus (not as glam as it sounds) although I am proud of my achievment (I'm 27) I do sometimes wonder if I have put too much pressure on my and OH.
Anyway, my question; I pay about £500 a month to cover the mortgage, for this whole year so far I only have about £500 worth of bookings (I'm thinking with the recession, weak ££ etc people just aren't in a position to go anywhere)... do I have to declare and pay tax on the rental income even though I am far from making any profit on the apartment?
Thank you
S
0
Comments
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*Summertime* wrote: »Hi everyone,
I hope someone can share some knowledge with me!
I have a second home in Cyprus (not as glam as it sounds) although I am proud of my achievment (I'm 27) I do sometimes wonder if I have put too much pressure on my and OH.
Anyway, my question; I pay about £500 a month to cover the mortgage, for this whole year so far I only have about £500 worth of bookings (I'm thinking with the recession, weak ££ etc people just aren't in a position to go anywhere)... do I have to declare and pay tax on the rental income even though I am far from making any profit on the apartment?
Thank you
S
Yes. But only on the net income not the gross amount. Any loss caan be carried forword to future year's profit."If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools"
Extract from "If" by Rudyard Kipling0 -
Thank you . But please can you explain that in simple terms for me....how do I calculate the net income? 0
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isnt it just a simple task of adding all the costs such as the mortgage interest, service charges, insurance etc etc and deducting from that any receipts from letting and the resulting figure will be either a profit (therefore taxable) or a loss0
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Well I have just paid a very high service charge for the year which puts me at a loss straight away!!
Think I need to get to grips with my accounts at the end of the tax year
0 -
Is the property in the North?0
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Ask HMRC (or download from their site) a "land and property form" which you should fill in to show the net profit,"If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools"
Extract from "If" by Rudyard Kipling0 -
0
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Ask HMRC (or download from their site) a "land and property form" which you should fill in to show the net profit,
Try this:
http://www.hmrc.gov.uk/forms/sa106.pdf0 -
SouthCoast wrote: »
There's also local taxation issues to be addressed possibly.No its in the Paphos area
My comment in relation to the North. Is that tax is payable monthly. So a logistical nightmare to make physical payment.0
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