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About to Rent, what can I offset for tax bill?
BernadetteN
Posts: 845 Forumite
We are about to relocate abroad for 2 or more years. Whilst our house is on the market, it appears that there is little chance of selling and we have decided to put our home for rent. We will remain UK tax payers as we are crown servants. My husband is in 25% bracket and may probably earn nothing so will have a full tax allowance unused.
1) will we be able to divide profits between husband and I as we are "joint tenants" of ourt home, and does it have to be 50/50 split or can all the profit be allocated to me as I will have a full allowance unused?
2) what sort of expenses can we offset for tax purposes? We will probably be using an estate agent so they are going to take their 10% and VAT takes another 17.5% of that.
We have 2 endowments taken out in 1996 totalling £135 a month.
We have 1 mortgage and the interest is currently around £200 per month.
We will have £30+ buildings insurance to pay per month.
We expect once the estate agent and VAT have taken their cut to be left with a gross sum of £500-£550 a month in rent.
Can we offset the buildings insurance, endowments and mortgage interest?
I would be really grateful if anyone could answer our 2 questions.
Thanks
1) will we be able to divide profits between husband and I as we are "joint tenants" of ourt home, and does it have to be 50/50 split or can all the profit be allocated to me as I will have a full allowance unused?
2) what sort of expenses can we offset for tax purposes? We will probably be using an estate agent so they are going to take their 10% and VAT takes another 17.5% of that.
We have 2 endowments taken out in 1996 totalling £135 a month.
We have 1 mortgage and the interest is currently around £200 per month.
We will have £30+ buildings insurance to pay per month.
We expect once the estate agent and VAT have taken their cut to be left with a gross sum of £500-£550 a month in rent.
Can we offset the buildings insurance, endowments and mortgage interest?
I would be really grateful if anyone could answer our 2 questions.
Thanks
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Comments
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1) will we be able to divide profits between husband and I as we are "joint tenants" of ourt home, and does it have to be 50/50 split or can all the profit be allocated to me as I will have a full allowance unused?needs to be 50/50 AFAIK
2) what sort of expenses can we offset for tax purposes? We will probably be using an estate agent so they are going to take their 10% and VAT takes another 17.5% of that. yes
We have 2 endowments taken out in 1996 totalling £135 a month.no
We have 1 mortgage and the interest is currently around £200 per month. yes
We will have £30+ buildings insurance to pay per month. yes, make sure the building insurance allows for tenants in the property.
We expect once the estate agent and VAT have taken their cut to be left with a gross sum of £500-£550 a month in rent.
Can we offset the buildings insurance, endowments and mortgage interest?building insurance and mortgage interest but not the mortgag capital or endowments
You can also offset any repair bills and maintenance, the cost of the gas certificate, any surveys, tenant deposit costs, landlord association costs, management fees....I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
BernadetteN wrote: »We are about to relocate abroad for 2 or more years. Whilst our house is on the market, it appears that there is little chance of selling and we have decided to put our home for rent.
I know I'm going to regret pointing this out, but you could easily sell your house, you just need to lower the price. :j
Are you hoping that when you come back in 2 years you'll be able to sell it for the price you are marketing it for now?
Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
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