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Tax and Rental
thecrater
Posts: 31 Forumite
in Cutting tax
Hello all,
I currently live in a small 1-bed flat. I own the flat so I don't have a mortgage on it. My circumstances have changed and I need to move to a bigger property.
I am on £50k+ and my other half doesn't work.
I am considering letting out my flat and putting the money towards renting a 2-bed and paying the difference. I was wondering if in doing so I would have to pay 40% on the income from the rent. I am not able to buy a bigger property yet but that is the plan in the long term. If I have to pay tax on the rental income, could I discount amount I would be paying in rent from my tax bill? otherwise I won't be able to afford the difference in rent costs.
I currently live in a small 1-bed flat. I own the flat so I don't have a mortgage on it. My circumstances have changed and I need to move to a bigger property.
I am on £50k+ and my other half doesn't work.
I am considering letting out my flat and putting the money towards renting a 2-bed and paying the difference. I was wondering if in doing so I would have to pay 40% on the income from the rent. I am not able to buy a bigger property yet but that is the plan in the long term. If I have to pay tax on the rental income, could I discount amount I would be paying in rent from my tax bill? otherwise I won't be able to afford the difference in rent costs.
0
Comments
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You can’t deduct rent paid on one property from rental income on another. The rent that you are paying is in no way an expense related to the property that you are renting out.0
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