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How can you prevent paying income tax on second home?
MrsSid78
Posts: 7 Forumite
Hi!
Is there anyway to avoid paying income tax in a second home? Can I take my name off the mortgage with husband and just have it on the other property? Then would have no capital gains when sell? Or is there anyway I can shift the "income" to something else. As I pay the mortgage out my salary technically I am being taxed twice! Can't believe it (well I can with our government actually)
I would so appreciate some advice!
Rachael. :money:
Is there anyway to avoid paying income tax in a second home? Can I take my name off the mortgage with husband and just have it on the other property? Then would have no capital gains when sell? Or is there anyway I can shift the "income" to something else. As I pay the mortgage out my salary technically I am being taxed twice! Can't believe it (well I can with our government actually)
I would so appreciate some advice!
Rachael. :money:
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Comments
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I dunno, I always thought tax avoidance was illegal.I’m a Forum Ambassador and I support the Forum Team on the Old style MoneySaving boards.
If you need any help on these boards, please let me know.
Please report any posts you spot that are in breach of the Forum Rules by using the Report button, or by e-mailing forumteam@moneysavingexpert.com.
All views are my own and not of MoneySavingExpert.com0 -
This is what I'm looking for, a legal way round it! Some kind of loop hole!0
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You could rent it out for less than you are paying in interest. That would do the trick.0
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Yes the problem there though is I won't be paying any capital off and I want to get it paid then sold. Due to the housing screw up it's only worth 3k more than what I paid 5 years ago for it! Ends up costing me about £700 a year in tax and repairs that I can't really afford or afford to sell so just thought wonder if there is anything I can do like changing names in mortgages etc!0
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Barneysmom wrote: »I dunno, I always thought tax avoidance was illegal.
Tax evasion is illegal. Tax avoidance is legal, but to some folks unethical.0 -
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You could rent it out for less than you are paying in interest. That would do the trick.
And then find HMRC tax your income on the assumption you should be receiving market rent...
Dear MrsSid.. have you worked out what your profits will be after all, legitimate, deductions?? They might be much less than you (otherwise) might hope...
Income should be be declared & taxed in the same % share as ownership. If HMRC find you are fiddling expect a large bill & fine ...
btw, if you are trying to fiddle does that mean you would be happy for the tenant(s) to be on the fiddle as well??? Suspect not...0 -
bend over and pay up...there's a good little landlord..It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Hi!
Is there anyway to avoid paying income tax in a second home? Can I take my name off the mortgage with husband and just have it on the other property? Then would have no capital gains when sell? Or is there anyway I can shift the "income" to something else. As I pay the mortgage out my salary technically I am being taxed twice! Can't believe it (well I can with our government actually)
I would so appreciate some advice!
Rachael. :money:
? ? ? ?
How are you being taxed twice? You're not paying the mortgage out of your salary your tenants are. That's what you are paying income tax on. Perfect fair really.0 -
Because the rent doesn't cover the mortgage! and I would appreciate the stupid comments that what I'm asking is illegal! All I asked is there ways round it! If I was completely dodging I would do what many other people do and not file the house at all to the tax man!!!!
I will take it as a no then and call an accountant who gets pays to offer advice on this without smart !!!! comments! So much for this being a useful site!0
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