Hi, I own one house in Kent and have recently moved out and now rent a property in Essex.
I intend to rent the Kent property out and continue renting myself in Essex.
Do I need to declare the rent received from my Kent property as income? Effectively moving has made me worse off, as the rent I pay for my Essex property is more than the rent I receive for my Kent property! Or, do you only get taxed on a 2nd property you own?
Thanks,
Replies (7)
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Hi Robert, I will answer your question if you answer mine
Why would you do this and THEN ask about the tax implication after the event?
As the other respondents state this is taxable income, albit you will get tax relief for some costs associated with the rentals, such as mortgage interest.
it is imperative that you take proper advice now to allow for any belated planning opportunities that may be open to you, in particular if your second post is correct (rental have not commenced) rather than your first post (rental has commenced) you may have more scope, but this very much depends on your circumstances, your personal set up and ownership of the property.
...and no you can't claim the rent you pay on the house you're renting / living in now as a deduction
No. Property income isn't taxable in your specific circumstances, under the Robertwebb exemption.
Receiving income from renting a property has nothing to do with your personal choice to rent another regardless of the financial position it may put you in.
However I suspect that the difference in rent received will be even less once the tax you are due to pay has been calculated.
Time to seek an accountant.