Tax on a let property
I have paid my mortgage completely on my property which is valued at 180k. I want to move to a bigger property. The bigger property is 230k. I want to rent out property one ( hopefully, over 20 years house prices will go up and I'll make a profit). So property one will become a business (residential let). In order to be able to do this I will take out an interest only mortgage on property 2 (175k), and pay 55k cash.
My question is, do I have to pay ax on the £600 rental income on property one? Or is this offset by the £600 interest I'll be paying on property 2.
The only reason I will be taking a mortgage on property 2 is to fund the business (property 1).
Thanks in advance!
- Probate services 297 4
- Opening Balance in Sage 50 Accounts 42 1
- Annual to At Least Quarterly 292 10
- Community Faux Pas 755 25
- AAT before CIMA? 70 1
- trading losses allowable? 705 13
- Digital tax accounts - what do we expect? 411 9
- Tax Fines - HMRC 718 11
- Shared Network Drive on the Cloud 60 3
- VAT - Check on clients business 840 34
- Portuguese Resident having a UK Limited Company 140 6
- Here we go.... 798 25
- Capital Gains 322 6
- Anybody have that old ACCA Student Training Record (STR)? 137 1
- Salary Sacrifce School Fees Self Assessment 281 11
- Repaying Directors Loans within 9 months 642 21
- Group relief for CT 125 2
- Practical experience 770 14
- Is Xero payroll as rubbish as I suspect it is? 1,250 23
- How do others remember to do things you promise for different clients? What systems? 1,513 32