Tax on letting property

woodi2

I am trying to sell my property and with the market the way it is, I have been considering letting it as opposed to selling.
My query here is regarding tax on the property I let.
I understand that any profit over and above the mortgage is taxed, excluding a few things stated on the governments website.
I am looking at my existing Mortgage and my provider has offered to swap my existing mortgage from a repayment to a buy to let. With this being an interest only mortgage, and as such only paying interest to the bank, I will be seen to be making around 700 to £800 profit and would be taxed accordingly.
I will be buying a second home and will live in this with my family. Could I use the cost of my mortgage payments on this home to offset against the property I am letting.

clutton_2

""Could I use the cost of my mortgage payments on this home to offset against the property I am letting. "" - no



"a few things stated on the governments website" - go to HMRC website and search for Taxation of Rents - there are a lot of legitimate expenses you can claim.

If you have claimed all you can, then you have to pay tax..... simples

antrobus

As the man said, not you can't claim back the cost of interest paid on the loan for your private residence. However, what you can do, depending on whether your lender will play ball, and the market value of your current property, is to 're-gig' your borrowings, so you have the maximum outstanding against the property you're renting out. If you see what I mean.

sequence

You can only claim the interest on the mortgage anyway, not the repayment part, so surely it shouldn't make THAT much of a difference ?