uk rental & tax
Aug 31st 2006, 12:19 am
#1
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Joined: Jul 2005
Location: Victoria Point Qld
Posts: 373
uk rental & tax
He I was wondering now that the tax year is over how people who are letting/renting their uk house out went with the tax side of things,did it work out in your favour? or did you have to pay? Trying to find out what is the best way to go with it.Also do you have to tell your bank you are renting it out,we will be moving back after 5/6 years to live in it.
Thanks John
Thanks John
Aug 31st 2006, 1:17 am
#2
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Joined: Jun 2005
Location: Ayr then Hampshire; Now Beaumaris, Melbourne
Posts: 1,034
Re: uk rental & tax
John,
We let our house last November and have just provided details to our UK tax accountant. At this stage he believes that our tax bill will be zero, or close to that.
From our rental income we can deduct a number of outgoings:
the estate agents fees, our tax allowance, depreciation/wear & tear, the cost of the gardner we employ, 2 flights home a year to check the property, the interest we pay on our mortgage, any repairs to the property, cost of postage etc and a few other incidentals.
As a result our tax liability is reduced to almost zero.
A good accountant will let you know what options are available to reduce the liability.
Incidentally we were required to notify our bank that we were no longer living there. Most banks require that and most have no issues with it.
Good luck.
Colin
We let our house last November and have just provided details to our UK tax accountant. At this stage he believes that our tax bill will be zero, or close to that.
From our rental income we can deduct a number of outgoings:
the estate agents fees, our tax allowance, depreciation/wear & tear, the cost of the gardner we employ, 2 flights home a year to check the property, the interest we pay on our mortgage, any repairs to the property, cost of postage etc and a few other incidentals.
As a result our tax liability is reduced to almost zero.
A good accountant will let you know what options are available to reduce the liability.
Incidentally we were required to notify our bank that we were no longer living there. Most banks require that and most have no issues with it.
Good luck.
Colin
Originally Posted by supersonic4
He I was wondering now that the tax year is over how people who are letting/renting their uk house out went with the tax side of things,did it work out in your favour? or did you have to pay? Trying to find out what is the best way to go with it.Also do you have to tell your bank you are renting it out,we will be moving back after 5/6 years to live in it.
Thanks John
Thanks John
