Rental advice

[TheLordDave]

Due to the ongoing crap with my house and needing somewhere bigger/nicer and having no luck selling up.

We have decided to rent something bigger and rent our current place out for a while.

As many of you are captains of industry and btl/slum lords are there any pitfalls to look out for? Or any specific taxation issues to address?

I presume any profit from the rental will have to go on my tax return, but as the property is joint owned would the profit be split between me and the Mrs tax returns?

[eek]

Due to the ongoing crap with my house and needing somewhere bigger/nicer and having no luck selling up.

We have decided to rent something bigger and rent our current place out for a while.

As many of you are captains of industry and btl/slum lords are there any pitfalls to look out for? Or any specific taxation issues to address?

I presume any profit from the rental will have to go on my tax return, but as the property is joint owned would the profit be split between me and the Mrs tax returns?

Yes

[TheLordDave]

Concise and to the point, I like it.

[RetSet]

You'll also need to ask for Consent to Let from your lender.

Don't forget that your mortgage interest becomes a business expense. Yes, the net profit is split.

And, since it was your former primary residence, there will be no CGT to pay when you sell.

BTW, where is it? There are ways of selling an unwanted property other than through an estate agent.

[ContrataxLtd]

You'll also need to ask for Consent to Let from your lender.

Don't forget that your mortgage interest becomes a business expense. Yes, the net profit is split.

And, since it was your former primary residence, there will be no CGT to pay when you sell.

BTW, where is it? There are ways of selling an unwanted property other than through an estate agent.

That bit in bold is wrong, just because it was your former primary residence doesn't mean it's still exempt from CGT. If it is only rented for a short period of time it is likely any CG can be reduced to NIL by various reliefs but not something to rely on.

Martin
Contratax Ltd

[Paddy]

Due to the ongoing crap with my house and needing somewhere bigger/nicer and having no luck selling up.

We have decided to rent something bigger and rent our current place out for a while.

As many of you are captains of industry and btl/slum lords are there any pitfalls to look out for? Or any specific taxation issues to address?

I presume any profit from the rental will have to go on my tax return, but as the property is joint owned would the profit be split between me and the Mrs tax returns?

Rent you property to you offshore tax haven company for £5 per month. Your offshore company will then let it out at £1200 pm. No tax involved. This is just like HMRC did with their own offices.