Buy to let tax?

rachelcward

I am buying a property which I will be letting to family members. My partner and I will be renting a property, the income from property rental paying our rent. Are there any tax concessions due to this?
Do I get tax relief on any furnishings/white goods I need to buy for the property and can I claim tax exemption for any tradesman/repair work I need to get done (eg plumber etc) during the course of the tenancy?
Advice will be much appreciated.

00ec25

read the basics on direct gov here

then move on to the HMRC guide here

make sure you learn about CGT as well as income tax

you would be best to use an accountant for your first tax return to ensure yoyu claim all that you can and do so correctly, thereafter it should be easy for you to DIY your tax return

as for your Q

1. big No No - you cannot offset the rent you are paying against the rent you receive

2. you choose the method you want to use, either the 10% basis or the replacement basis - see explanation on links above

3. assuming the work is for repairs not improvements then these are normal business expenses against profit for income tax, again see link above for list of other eligible costs

angrypirate

Letting properties out is a business. To go into a business without a business plan is foolish. To write a business plan you need to do the research on your business.

martindow

Also think twice about lending to family. Mixing business with family or friends is generally not a good idea.

theartfullodger

as martindow says..

If the tenants end up needing HB/LHA (Housing benefit/Local Housing Allowance..) yes I know they have wonderful jobs now but,., sickness, loss of job, family crisis, economic slump (oh! We've got one already..)etc etc..
then be very very very careful or you might find you've shot yourself in't foot see...
http://england.shelter.org.uk/get_advice/paying_for_a_home/housing_benefit_and_local_housing_allowance/housing_benefit_if_renting_from_a_family_member

Also you will need Gas safety cert if you have gas & you MUST MUST MUST get proper landlord insurance (or no cover when place burns down & relos 'orrible burned..: you now bankrupt..)

Do it all by-the-book or expect a disaster...

Cheers!

Artful