Renting property and TC

bonny80

Hi there. Me and my family had to move to a bigger home and rent it out. We rent our previous property out now which has a mortgage. I don't know how to calculate this for tax credit. If Im getting rent do I take it off my rent for property Im in now hence Im not making a profit (our present rent is a lot higher than rent we are receiving off previous house) or will it be seen as a profit anyway? I have asked them but they aren't that sure themselves.

bonny80

Thanks for your reply. I really don't understand any of that. It talks somewhere about making a loss but how could a rental property make a loss then? The rent covers our mortgage so I take it that doesn't count?

PasturesNew

Rent - costs = income.
Costs = mortgage interest, not any capital repayment part.
Costs = legitimate/allowed expenses, eg estate agent fees and landlord insurance and annual gas certificate.

bonny80

Thank you that's a bit easier! I will get it worked out then, much appreciated.

bonny80

Whats an sa return? We have only just moved as I had to move quickly so have no idea what I was to do. I'm due to have a chat with hubbys accountant in January but didn't think he would be able to help with the TC.