Renting my house on a consent to let - Do I have to pay income tax?

tbs624

ahfh1 wrote: »

Seeing as the housing market still has not picked up yet in my area, I have decided to rent out my new home for 1 year whilst I sell my old home .......you could say I have become one of these 'accidental landlords'.

I have obtained a consent to let on the new house. However, do I have to pay income tax on the income? The rental income just about covers the mortgage and agency fees, so I'm not making any profit.

Join one of the national LL associations, or a local affiliated one and/or Tessa Shepperson's LL law site. Tax deductible membership fees, discounts on LL insurance and much useful advice. On tax why not just check out the HMRC website - in particular the PIM (Property Income Manual) here

martindow

CLAPTON wrote: »

there is no cgt on your principal residence in any case.

True but the OP has two houses. The one he is going to rent will be liable though as has been said there is not likely to be any tax payable unless house prices start racing up.

new_home_owner_3

joolley wrote: »

I am often wrong. And I have got used to being wrong. But, I find it unbelievable that you have 'suddenly' realised that you will not move into your new house got on a residential mortgage, that just happens to be in an area of good rental yield. Plan all along, perchance? BTL by the back door? Funny that. Most folk would move and rent the old house that they don't want anymore while it's on the market. have you got permission to let the new one? How bizarre?

But I may well be wrong. I often am. Oh, I said that already.

Really speaking i dont think the other person is bothered how funny you find it, he has explained his situation, hes got a low residential mortgage rate with consent to let, which in theory is the same as a btl mortgage.

If thats a issue for you and VIGILANT22, then you are both going to have to live with it, however bizarre yiu find it.

joolley

new_home_owner wrote: »

Really speaking i dont think the other person is bothered how funny you find it, he has explained his situation, hes got a low residential mortgage rate with consent to let, which in theory is the same as a btl mortgage.

If thats a issue for you and VIGILANT22, then you are both going to have to live with it, however bizarre yiu find it.

That's the thing about internet forums. Asking for advice or opinions often leads to varying views, whether the OP and their sympathisers agree with these opinions. It is indeed bizarre to me.

I have never got into an argument online, and don't intend to start now. Get a grip.

VIGILANT22

wrote: »

Really speaking i dont think the other person is bothered how funny you find it, he has explained his situation, hes got a low residential mortgage rate with consent to let, which in theory is the same as a btl mortgage.

If thats a issue for you and VIGILANT22, then you are both going to have to live with it, however bizarre yiu find it.

This poster new_home_owner is about as useful as as a chocolate teapot...he goes under different guises posts as confused31 & rent_and_buy

He knows nothing other than encouraging people to let even without consent...If you look at his posts under all the different names, he didn't even understand what he was doing when renting out his property...still doesn't even understand tax implications.....he is well known on this board ..all he can do is criticise estate agents/letting agents/mortgage advisors......However look at his knowledge!!........:rotfl:

ahfh1

joolley wrote: »

I am often wrong. And I have got used to being wrong. But, I find it unbelievable that you have 'suddenly' realised that you will not move into your new house got on a residential mortgage, that just happens to be in an area of good rental yield. Plan all along, perchance? BTL by the back door? Funny that. Most folk would move and rent the old house that they don't want anymore while it's on the market. have you got permission to let the new one? How bizarre?

But I may well be wrong. I often am. Oh, I said that already.

Look, everyone is getting diverted away from my main question.

It sounds like we've got people from different backgrounds who are knowledegable in their own field of expertise and putting forward their opinions. That's what I'm after, as long as they answer my question, which most people have attempted to do.