Accoutancy Advice

[Dandyesque]

Can any of the (many) accountants on the board give some advise regarding renting out a 2nd property?

 

I have recently moved out of my flat and as the mortgage left didn't amount to much, I have decided to rent it out. Can anyone advise on the tax implications and how you go about declaring, etc?

 

I won't make much income per se that doesn't go back into mortgage or insurance payments, but want to be sure that I am above board, particularly regarding future increases in property value, etc.

 

Or am I better selling it?

 

Cheers.

[tup]

First bit of advice - learn to spell accountancy.

[The Boofon]

First bit of advice - learn to spell accountancy.

 

 

 

Sell it.

 

Buy a Maserati with the money.

[tup]

Can any of the (many) accountants on the board give some advise regarding renting out a 2nd property?

 

I have recently moved out of my flat and as the mortgage left didn't amount to much, I have decided to rent it out. Can anyone advise on the tax implications and how you go about declaring, etc?

 

I won't make much income per se that doesn't go back into mortgage or insurance payments, but want to be sure that I am above board, particularly regarding future increases in property value, etc.

 

Or am I better selling it?

 

Cheers.

 

You would need to prepare a self-assessment tax return each year, detailing the income and expenses.

 

You must also register as a landlord and fulfill all the criteria therein.

 

Selling it might make sense but it depends on how much you stand to gain by doing so, in relation to the original cost.

[Dandyesque]

First bit of advice - learn to spell accountancy.

 

Very good.

 

I'm not certain that is in the slightest bit relevant though.

 

Particularly as it was a typo, rather than me not knowing the correct spelling.

[Dandyesque]

You would need to prepare a self-assessment tax return each year, detailing the income and expenses.

 

You must also register as a landlord and fulfill all the criteria therein.

 

Selling it might make sense but it depends on how much you stand to gain by doing so, in relation to the original cost.

 

That's better.

 

I have already registered and been assessed as a fit and proper person - not that I had to do anything to establish this fitness and properness.

 

I'd probably clear a fair amount, but only enough to buy a 2nd hand Maserati, rather than brand new. I was thinking of it as a bit of a pension and investment.

[tup]

That's better.

 

I have already registered and been assessed as a fit and proper person - not that I had to do anything to establish this fitness and properness.

 

I'd probably clear a fair amount, but only enough to buy a 2nd hand Maserati, rather than brand new. I was thinking of it as a bit of a pension and investment.

 

But there are various obligations for landlords, like annual service of heating equipment, and perhaps bills dependent on whether you are renting with these included or otherwise.

 

If you already have another house you will not get capital gains exemption on the sale of it as your principal private residence, so it might be wise to rent it until such time as the mortgage is settled.

[Foster14]

If you already have another house you will not get capital gains exemption on the sale of it as your principal private residence, so it might be wise to rent it until such time as the mortgage is settled.

 

Tax is not an area I keep that up to date on anymore, but pretty sure you'd get capital gains exemption for the period it was your principal property of residence and in addition to that, I am sure there was something like 3 years when it was vacated from (but no renting).

[Henry]

 

 

I have already registered and been assessed as a fit and proper person - not that I had to do anything to establish this fitness and properness.

 

I'd probably clear a fair amount, but only enough to buy a 2nd hand Maserati, rather than brand new. I was thinking of it as a bit of a pension and investment.

 

Sounds like you're taking over the Huns.

[Tommy]

First bit of advice - learn to spell accountancy.

 

 

Second bit of advice - learn to spell accuntants.

[Dandyesque]

Tax is not an area I keep that up to date on anymore, but pretty sure you'd get capital gains exemption for the period it was your principal property of residence and in addition to that, I am sure there was something like 3 years when it was vacated from (but no renting).

 

I also believe this to be the case.

 

Plus, is there not an tax-free allowance of something like

[The Boofon]

I also believe this to be the case.

 

Plus, is there not an tax-free allowance of something like

[Dandyesque]

Maserati not an option then I take it?

 

Silly decision IMO.

 

I've only got 2 years no claims so the insurance would be a killer.

[tup]

Can any of the (many) accountants on the board give some advise regarding renting out a 2nd property?

 

 

Second bit of advice, learn to spell advice.