Letting out house and renting elsewhere - tax?

aaronb74

I'm trying to sell my house in order to relocate and keep my job. If I can't, however, I'm also considering letting it out and renting elsewhere. Would I still have to pay tax on the income from renting out my own place, even though I'd still be paying my mortgage AND paying to rent somewhere else? The rental income probably wouldn't even cover my mortgage at the moment anyway as I'm on quite a high rate (which would get higher if renting it out).

jamie11

Yes. All income must be reported on your tax return. If you're renting your own place don't forget to get permission from your lender. You must get a gas certificate and a EPC as well and any other expenses you incur after you let it can be offset against tax.

It is wise to have the electrics tested as well although it's not require by law.......yet.

Since it's your own home serve a notice under S20 to any would be tenant before you have him sign an agreement. That will help you get the place back if you have to.

tbs624

See a similar thread here https://forums.moneysavingexpert.com/discussion/3320028

OP - note that any rent payments you have to make for a roof over your own head are irrelevant to the "unearned income" you would be receiving on the property you will be letting out. Post 6 in the above thread tells you where to get the relevant info you need.

tbs624

jamie11 wrote: »

...Since it's your own home serve a notice under S20 to any would be tenant before you have him sign an agreement. That will help you get the place back if you have to.

jamie11 - if someone is *a newbie LL* how does that sentence help him/her?

G_M

These are some of the things to consider.

edit: sorry - just realised it's a shortcut to the same post as tbs624's above.

jamie11

tbs624 wrote: »

jamie11 - if someone is *a newbie LL* how does that sentence help him/her?

Sorry! My bad.

What I should have put was this,


"Take notice that the Landlord is an owner/occupier within the meaning of the Housing Act 1988 Schedule 2, Ground 1 as amended by the Housing Act 1996 and may recover possession on that basis.

The property is subject to a mortgage within the meaning of the Housing Act 1988 Schedule 2 Ground 2 as amended by the Housing Act 1996 and the Landlord or Mortgagee may recover possession under said ground and the tenant hereby acknowledges that notice in accordance with the aforesaid provision of the Act has been properly given."

That is grounds 1 and 2 of a S8. So if the OP wants to regain possession at any time it will help a lot.