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Do we have to declare this?
Lambo89
Posts: 5 Forumite
My partner moved out of her flat and in to my house a few years a go. Her flat was in negative equity so we had to let it out.
The mortgage payments are large (interest only) and the rent we get back is only equal to about half of the payments.
I've read the HMRC guidance and as far as I understand the interest on the loan can be used as one of the deductions and we can use the interest on the mortgage to offset against the rent and can also use this in future years if it does ever make any profit.
My question is does this have to be declared to the tax man even though it is technically making a loss?
The mortgage payments are large (interest only) and the rent we get back is only equal to about half of the payments.
I've read the HMRC guidance and as far as I understand the interest on the loan can be used as one of the deductions and we can use the interest on the mortgage to offset against the rent and can also use this in future years if it does ever make any profit.
My question is does this have to be declared to the tax man even though it is technically making a loss?
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Comments
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Yes. You must declare the income and expenses from the letting business. Losses on property letting can be offset against profits on letting, so you have to tell HMRC the situation, even if making a loss.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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What is the best way to go about doing this?0
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