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Moving house - buy to let
HollySurrey
Posts: 3 Newbie
Hello, We are currently having a property and now we need to move to another county for my spouse's job changes. The current property is through mortgage. Rather than go into hassle of selling immediately we are thinking if we can let our current property and go on rent in our new area. If we do this do we get affected by the buy to let taxation rule changes.
Or since we dont have another property can we show this rental payment to save on taxation.
Any idea on this appreciated.
Or since we dont have another property can we show this rental payment to save on taxation.
Any idea on this appreciated.
0
Comments
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To which BTL taxation are you referring? According to Artful (a landlord btw) there are 10 different taxes a landlord can pay. As a starter for ten you might want to look at the non resident landlord scheme:
https://www.gov.uk/tax-uk-income-live-abroad/rent
As there is a mortgage you will require consent-to-let from your lender and you should read G_M's comprehensive Guide to Tenancies in England & Wales which includes advice for new landlords and how to select a letting agency.
Personally I would have though it easier to sell now rather than trying to manage a sale from abroad as well as a rental.0 -
HollySurrey wrote: »Hello, We are currently having a property and now we need to move to another county for my spouse's job changes. The current property is through mortgage. Rather than go into hassle of selling immediately we are thinking if we can let our current property and go on rent in our new area. If we do this do we get affected by the buy to let taxation rule changes.
Or since we dont have another property can we show this rental payment to save on taxation.
Any idea on this appreciated.To which BTL taxation are you referring? According to Artful (a landlord btw) there are 10 different taxes a landlord can pay. As a starter for ten you might want to look at the non resident landlord scheme:
https://www.gov.uk/tax-uk-income-live-abroad/rent
As there is a mortgage you will require consent-to-let from your lender and you should read G_M's comprehensive Guide to Tenancies in England & Wales which includes advice for new landlords and how to select a letting agency.
Personally I would have though it easier to sell now rather than trying to manage a sale from abroad as well as a rental.
I don't think the OP is emigrating0 -
Thanks for your reply. And adding a small clarification we are moving to a different county not country. We don't want to sell as we consider this house in a good area and its a long term investment. We just want to keep this and rent out in the new area we are shifting to within England. Now that we are letting out our property we understand we have to shift our mortgage to a buy to let one, in this case we found that there have been recent changes where our mortgage would not be offset against the rental income and we would need to pay tax for the entire rental income and this would result in a negative income by 2020. This is what we are concerned about. Thanks0
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You pay income tax on the rental profit (rent income minus allowable interest e.g. repairs, management fees, etc, not mortgage). You then get tax relief on the INTEREST portion of your mortgage payment only, with
2017-18: 75% of interest at highest tax rate, rest at 20%
2018-19: 50% of interest at highest tax rate, rest at 20%
2019-20: 25% of interest at highest tax rate, rest at 20%
2020 onwards: all interest at 20%
Your own rental payment has nothing to do with the BTL.0 -
Is this going to be a permanent relocation?0
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When I was in this position I put my house up for sale and then relocated and rented in the new location. Once my house had sold I bought in the new location.
I think that is a lot less hassle than becoming a long distance amateur landlord.0 -
We are thinking of keeping the house for may be moving back to it after a few years.0
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https://www.bloomberg.com/news/articles/2017-06-05/london-home-rents-drop-at-steepest-rate-in-eight-years-on-glut
Is this spreading beyond London?0
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