Property investment
Discussion
hi there,
I have recently bought a new house (with a garage at last!!). Rather than sell my current flat in Edinburgh I have decided to rent it out. The rental income will more than cover the mortgage and the extra cash will go towards paying the (large) mortgage on the new house.
I assume that any increase in value of the property that is not my main residence (i.e. the flat) will be charged at 40% if I sell the property. Is this correct? Is there any way of minimising / avoiding capital gains tax? Also what happens if at some point in the future I choose to move back into the flat and sell the house? Would I still have to pay tax on the increase in the value of the flat?
Am I correct is stating that I will only be taxed on the difference between the rental income and what I pay as a mortgage on the flat? Is there anything else that I can deduct (i.e. new fixtures and fittings such as new beds, curtains, bathroom suites, etc) to minimise the aount of tax that I pay?
I'm hoping that property prices will rise at approx. 4.0-4.5% per annum. Anything above this will be a bonus!
Cheers.
Martin.
I have recently bought a new house (with a garage at last!!). Rather than sell my current flat in Edinburgh I have decided to rent it out. The rental income will more than cover the mortgage and the extra cash will go towards paying the (large) mortgage on the new house.
I assume that any increase in value of the property that is not my main residence (i.e. the flat) will be charged at 40% if I sell the property. Is this correct? Is there any way of minimising / avoiding capital gains tax? Also what happens if at some point in the future I choose to move back into the flat and sell the house? Would I still have to pay tax on the increase in the value of the flat?
Am I correct is stating that I will only be taxed on the difference between the rental income and what I pay as a mortgage on the flat? Is there anything else that I can deduct (i.e. new fixtures and fittings such as new beds, curtains, bathroom suites, etc) to minimise the aount of tax that I pay?
I'm hoping that property prices will rise at approx. 4.0-4.5% per annum. Anything above this will be a bonus!
Cheers.
Martin.
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