polly 01 Posted June 12, 2010 Report Share Posted June 12, 2010 Hi, I am considering letting out my home but am concerned it will not be a profitable venture. I am trying to understand the tax laws and am unsure about how much of my rental income is taxable. I work full time. I am still paying the mortgage on the property, and would just be renting somewhere else in the meantime. Would I be taxed on the full value of the rental, or only the amount that I am in profit after my mortgage payments? So if my monthly mortgage payment is £500 and I am receiving £900 a month in rent, would I be taxed on the full £900 or on £400, as the other £500 is going towards my mortgage payments? I understand that I can claim tax relief on expenses on the property but unsure about how much of the rental income would be taxed. Any help much appreciated! Link to comment Share on other sites More sharing options...
Chestnut Posted June 12, 2010 Report Share Posted June 12, 2010 As I understand, only the interest on a mortgage can be a deductible expense for tax, not the repayment element. Link to comment Share on other sites More sharing options...
Melboy Posted June 13, 2010 Report Share Posted June 13, 2010 Currently you are only entitled to tax relief on the mortgage interest and not the whole mortgage amount. I have a feeling the coming budget might alter this a bit with more tax grab. Yes, you can claim for other things as well such as insurance, professional checks etc. etc. Mel. Link to comment Share on other sites More sharing options...
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