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Mortgage-free but paying tax for renting
oneortheother
Posts: 1 Newbie
I'm hoping some of you wise people can give me an idea of what to do with a lump sum of money.
Our mortgage currently is around 110,000 GBP and we currently have 5 grand to invest. The snag is that we also rent out the house. Despite joint-owning and claiming as much as possible back on expenses, husband had to pay 350 tax after completing the tax return.
So, what to do with that money? ISA's and savings accounts don't yield much interest at all. If we were to take the money and pay off mortgage, we would end up with an even higher tax bill next year due to rental income and claiming back less on mortgage interest. Can't see a way forward and your suggestions would be much appreciated.
Thank you.
Our mortgage currently is around 110,000 GBP and we currently have 5 grand to invest. The snag is that we also rent out the house. Despite joint-owning and claiming as much as possible back on expenses, husband had to pay 350 tax after completing the tax return.
So, what to do with that money? ISA's and savings accounts don't yield much interest at all. If we were to take the money and pay off mortgage, we would end up with an even higher tax bill next year due to rental income and claiming back less on mortgage interest. Can't see a way forward and your suggestions would be much appreciated.
Thank you.
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