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Second house and tax

Hi, just had a question regarding buying a second house wondering if anyone could provide any help.

My questions is based on a friend, who is receiving working tax credits, and is planning on buying a second house and renting it out. However the house will be empty for a short period of time while he raises money to undertake any repairs.

As far as I can gather rental income from a property has to be told to HMRC however when a house is bought is there a requirement to tell HMRC before there is any income from the property?

Hope that makes sense any advice would be appreciated.

Comments

  • Annie1960
    Annie1960 Posts: 3,009 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    How much is the house? HMRC will know about any house purchase over the SDLT threshold as the purchaser will have paid SDLT to HMRC.
  • Tixy
    Tixy Posts: 31,455 Forumite
    This question may be better answered on the benefits section of the forum.

    However from this link - https://www.gov.uk/changes-affect-tax-credits
    owning a second property or the level of your assets changing does not appear to affect working tax credits.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • ging84
    ging84 Posts: 912 Forumite
    Part of the Furniture Combo Breaker
    i expect you would want hmrc to know about it right away, because you would want to deduct the costs for this period from the tax on the rent later in the year
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