Buying and letting

Fortyfoot

I am buying the other 50% of a flat which I part own. I do not need the flat now but will in a few years time, may be 3 or 4 years.

If I let the flat, what rate will I be taxed on, I am a standard rate tax payer. The flats like this rent out at £400 - £500 a month.

Will the mortgage payments and service charges on the flat be able to be offset against tax?

Will there be any problems when I move in later?

Any other suggestions are welcome.

Thanks,

Fortyfoot

clutton_2

you will be taxed on your profits... see the revenue Taxation of Rents leaflet (on line i think) to see what sort of expenses you can claim for now that you are running a property business.. you can only claim the interest portion of the mortgage repayment. Services charges are also offsettable.

The revenue used to run free day courses for the newly self employed which were very useful indeed.

i suggest you use a letting agent to let the flat at first, and read www.landlordzone.co.uk to see all the possible problems with becoming a LL