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Have a mortgage but want to rent house out

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    dendes wrote: »
    Does anyone know how I'll be taxed on the rental income as a basic rate tax payer?

    The net profit made from renting out the property will be added to any other sources of income which you may have. The total will determine the amount of tax you are then liable to pay and the rate at which it will be levied. .
  • martindow
    martindow Posts: 10,627 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    dendes wrote: »
    Thank you for your reply. More tax!! As if I don't pay enough :(
    More income therefore more tax - seems fair enough to me!
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Tenancies in Eng/Wales: Guides for landlords and tenants
  • Kayleigh141
    Kayleigh141 Posts: 17 Forumite
    I have a property which I rent out after living in it for 6 years - I asked nationwide for permission to let. They should be happy to provide this to you if you are not in arrears, with a document which confirms you can rent it out for 3 years.

    After 6 month they put your mortgage rate up by 1%
  • zagubov
    zagubov Posts: 17,939 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Kayleigh141 wrote: »
    I have a property which I rent out after living in it for 6 years - I asked nationwide for permission to let. They should be happy to provide this to you if you are not in arrears, with a document which confirms you can rent it out for 3 years.

    After 6 month they put your mortgage rate up by 1%

    We rented out our house about 10 years ago, same lender as you, were fine with it.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
  • dendes
    dendes Posts: 18 Forumite
    martindow wrote: »
    More income therefore more tax - seems fair enough to me!

    Not really. I work hard for my money. Just seems wrong it's the man that tries to work hard gets taxed the most, when huge organisations don't pay anyway near what they should.

    But that's a whole different conversation :)
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 16 January 2016 at 4:04PM
    So you are suggesting that you should pay no income tax on your rental income? Curious...
    You will be taxed on your rental income less your legitimate tax-deductible expenses. If that taxable income lifts you into a higher tax band, you'll pay the higher rate on the marginal amount. Just as if it was income earned from a salary or self employment, there is no difference, unless the rental is paid to a company.
    No free lunch, and no free laptop ;)
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