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Renting out a flat - tax implications...
Apple_Bob
Posts: 2 Newbie
Hi there. My son is recently bought his first flat and wants to rent out the whole thing whilst living up in London...
Does anyone know what tax implications there are for doing this? As the cost will be £750 I am trying to work out what the monthly tax liability would be here...
If you can help in this very new experience, I would be grateful of any advice.
Thanks in advance
Does anyone know what tax implications there are for doing this? As the cost will be £750 I am trying to work out what the monthly tax liability would be here...
If you can help in this very new experience, I would be grateful of any advice.
Thanks in advance
0
Comments
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you pay tax on the difference between the rental income and the expenses allowed.
You should notify the inland revenue that you have this business and they will send you the relevent forms to include in your tax return.
Mortgage interest is an allowable expense, so this can normally go a long way to reducing the tax bill.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
You should also be aware of the Capital Gains Tax angle. You avoid CGT on your own home through what is called Private Residence Relief. Have a look at this link to HMRC website which explains it in more detail, as depending who lives in and how long for, there could be a CGT liability in the future.Today is the first day of the rest of your life0
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