Do we have to declare this?

Lambo89

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?

As a very basic example the mortgage payment is around 650/month and the rent is 390/month.

Somerset

Yes, it has to be declared (even though it's loss-making)