Rental Income Tax

Gorgeous_George

Take a sheet of paper and start by writing down the the income:
* (12 x monthly rent)

Now start with expenses:

* Mortgage Interest (should be easy to work out)
* Agent's fees
* Repairs (receipts required)
* Mileage (40p per mile allowed, I believe)
* Wear and tear (10% (of rental income) permitted)
* and so on

The difference between income and expenses is profit and will be taxed at your higher rate. If only half of the income is yours, you should both declare your shares to the tax man. Any LOSSES can be carried over into the next FY.

Write or phone your tax office. They are really nice people and will point you in the right direction. Consider employing an accountant/tax adviser (also claimable as an expense).

Good luck.



GG