Letting your property

[Speedy]

Does anyone let out their property?

Do you have to pay tax on any income that you receive in rent? e.g. is it considered as income and subject to income tax, or perhaps capital gains tax or something?

Cheers.

[marinello59]

I used to. It is classed as income but remember you will only be paying tax on the profit, not the whole sum.

[CropleyWasGod]

I let out property.

Definitely Income Tax, payable on net income after mortgage (interest, not capital), repairs, management fees and any other running (ie non-capital) costs.

Capital Gains Tax will, or may, kick in when you sell it.

[Speedy]

Cheers guys.

The reason I was asking is that I was wondering if it would be worthwhile buying a flat to let and then renting another property to actually live in.

It sounds like it probably wouldn't be.

[lapsedhibee]

Cheers guys.

The reason I was asking is that I was wondering if it would be worthwhile buying a flat to let and then renting another property to actually live in.

It sounds like it probably wouldn't be.

Only nice tax break in the renting game at the moment is I think the "rent a room" scheme, which allows you to take a lodgerperson/s into your own accommodation and collect up to £4250 a year off them without being taxed on it.

[One Day Soon]

And from later this year or early next there is a new deposit scheme which means that your tenant's deposit is effectively bonded. So if they do a runner or smash up your property it could take a while to get the deposit.

Renting out your own and then renting another to live doesn't sound like too sensible a financial proposition.

[Speedy]

And from later this year or early next there is a new deposit scheme which means that your tenant's deposit is effectively bonded. So if they do a runner or smash up your property it could take a while to get the deposit.

Renting out your own and then renting another to live doesn't sound like too sensible a financial proposition.

:agree:

Doesn't sound like it.

[Viva_Palmeiras]

Seems to me there's not much money if any to be made
In this game when you have buy to let stipulating you need to charge 130% of the mortgage so surely people are going for interest only deals
Arrangement fees are reaching 900-2000 from what I can see put on fop of that 12-15% mgt fees - I really do wonder how people do it if they are posted overseas for example. Perhaps folk don't change their deals
To buy to let .....

[CropleyWasGod]

Seems to me there's not much money if any to be made
In this game when you have buy to let stipulating you need to charge 130% of the mortgage so surely people are going for interest only deals
Arrangement fees are reaching 900-2000 from what I can see put on fop of that 12-15% mgt fees - I really do wonder how people do it if they are posted overseas for example. Perhaps folk don't change their deals
To buy to let .....

People don't generally do it for income. They do it for capital for retirement.

[One Day Soon]

People don't generally do it for income. They do it for capital for retirement.

Shh, you've let the secret out!