Tax on renting a house

[Wings]

Eric Mc said:

A lsndlord can offset the mortgage INTEREST on the loan taken out to buy the rental property against the income from that rental property.
Therefore, they cannot offset the actual full loan REPAYMENT - only the element of the monthly repayments that relates to interest.

Of course, if the mortgage is an "interest only" mortgage, then the monthly amounts are all interest and are fully allowable.

Landlords can offset lots of other costs against the rental income too - such as repairs and maintenance costs, insurances, agents fees, managment charges etc etc.

The etc. etc. of course allows the landlord if renting a furnished property, to make the decision of either claiming a wear & tear taxable allowance of 10% of the gross annual rent, or a net cost of replacing items of furniture, called a renewal allowance.

[Eric Mc]

10% of Gross rent LESS rates, council tax and water rates paid by the landlord

[fergywales]

Thought that sounded wrong, was going to have a grump at the accountant then!

[Wings]

I believe most landlords letting a house, whether furnished or unfurnished, would let the house exclusive of ALL service charges etc. The last thing that the majority of landlords want to avoid, is being held responsible for service charges, although future legislation being debated in the House of Commons, may attempt to hold landlords more accountable.

[Wings]

I believe most landlords letting a house, whether furnished or unfurnished, would let the house exclusive of ALL service charges etc. The last thing that the majority of landlords want to avoid, is being held responsible for service charges, although future legislation being debated in the House of Commons, may attempt to hold landlords more accountable.