What would be tax position?
Question
I am thinking of letting out my house as a self-catering holiday property, and moving to the country. What tax would I have to pay on the income? Can I claim back any work needing doing to the property against the tax? Arthur Weller replies: You will have to pay income tax on the net rental income, i.e. the gross rental income (actually received from the tenant) less the allowable expenses. Unfortunately, allowable expenses do not include the time the landlord himself spends working on the rental properties, only the money he actually pays to other people to work on the rental properties, or the money he actually pays for materials etc. (see www.hmrc.gov.uk/manuals/pimmanual/PIM2080.htm). |