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    • absman
    • By absman 19th May 19, 6:13 PM
    • 3Posts
    • 0Thanks
    absman
    Letting Primary House and Tax Implications
    • #1
    • 19th May 19, 6:13 PM
    Letting Primary House and Tax Implications 19th May 19 at 6:13 PM
    If I let my own primary house and I live on rent somewhere else will it attract income tax?
    Lets say, I am salaried having 40k annual salary.
    Owning a house at 700 per month
    And paying a rent of 700 for apartment where I live.
    Will there there be any tax implication?

    Thanks
Page 1
    • Slithery
    • By Slithery 19th May 19, 6:24 PM
    • 1,572 Posts
    • 2,523 Thanks
    Slithery
    • #2
    • 19th May 19, 6:24 PM
    • #2
    • 19th May 19, 6:24 PM
    Yes.


    You will have to pay income tax on any income from your rental property as well as being liable for CGT when you sell.
    • absman
    • By absman 19th May 19, 8:09 PM
    • 3 Posts
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    absman
    • #3
    • 19th May 19, 8:09 PM
    • #3
    • 19th May 19, 8:09 PM
    Thank you Slithery. Was checking if there is anyway to adjust cost that is incurred for primary living.
    Think its not good idea to rent property if you are living in the same city.
    If you are working in different city then there is no option than rent and pay income tax.
    Doesn't sound good, but I think its reason people sell there house if they are moving somewhere.
    • 00ec25
    • By 00ec25 19th May 19, 8:35 PM
    • 8,119 Posts
    • 7,874 Thanks
    00ec25
    • #4
    • 19th May 19, 8:35 PM
    • #4
    • 19th May 19, 8:35 PM
    Doesn't sound good, but I think its reason people sell there house if they are moving somewhere.
    Originally posted by absman
    well durr

    Why do you think the taxpayer should subsidise your living expenses by giving tax relief on your letting income because you choose not to sell up?
    Last edited by 00ec25; 19-05-2019 at 8:39 PM.
    • absman
    • By absman 19th May 19, 8:56 PM
    • 3 Posts
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    absman
    • #5
    • 19th May 19, 8:56 PM
    • #5
    • 19th May 19, 8:56 PM
    Its not subsidy.. but its like paying incometax for primary residence.
    if you do not rent but live in primary house is not expense.. but you pay rent and earn same amount as rent doesn't negate anything but rent treated as living expense and rented income..
    anyways. answer is clear ..
    • The Earl of Streatham
    • By The Earl of Streatham 20th May 19, 7:13 AM
    • 139 Posts
    • 283 Thanks
    The Earl of Streatham
    • #6
    • 20th May 19, 7:13 AM
    • #6
    • 20th May 19, 7:13 AM
    In what way is a house in which you don't live and is rented to someone else your primary residence?
    • AdrianC
    • By AdrianC 20th May 19, 8:51 AM
    • 22,734 Posts
    • 21,623 Thanks
    AdrianC
    • #7
    • 20th May 19, 8:51 AM
    • #7
    • 20th May 19, 8:51 AM
    Its not subsidy.. but its like paying incometax for primary residence.
    if you do not rent but live in primary house is not expense.. but you pay rent and earn same amount as rent doesn't negate anything but rent treated as living expense and rented income..
    anyways. answer is clear ..
    Originally posted by absman
    I think you're confusing two separate things here.

    If you run a residential property letting business, you pay tax on the profits of that business. End of.

    Where you choose to live - owned or rented - is something completely separate.

    You're assuming that because you only own one property, it should always be tax-free, whether you live there or not. No - it's simpler than that. If you live there, it's tax-free simply because you aren't using it for a property letting business, so there's no income TO tax. If you rent it out, you are, and there is.
    • Crashy Time
    • By Crashy Time 20th May 19, 6:35 PM
    • 7,898 Posts
    • 2,835 Thanks
    Crashy Time
    • #8
    • 20th May 19, 6:35 PM
    • #8
    • 20th May 19, 6:35 PM
    well durr

    Why do you think the taxpayer should subsidise your living expenses by giving tax relief on your letting income because you choose not to sell up?
    Originally posted by 00ec25
    Good point.
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