Tax On Rented Property

denby11

Registered User
Messages
45
Got Married some months ago and have rented out my house.For the past seven years I have rented out a couple of rooms and at the time of moving out had a couple of longstanding tenants so kept the arangement going by which i pay the bills oil/light heat/sky and charge a flat rate which is included in the rent.When it comes to paying tax will i be able to allow these expences against rental income which has these expences incoporated?
Also my intention was to sell before the bubble burst,when i eventually sell can i put the value of the property when i move out aprox 350k(since it was my primary residence) against the price i recieve for cgt purposes.
Thanks
 
Expenses wholly and exclusively in the course of the letting are allowable. You deduct the actual costs incurred by you from the gross rent received.

You cannot use value on moving out as the base for CGT. You calculate on the basis of cost from selling price ( after costs of sale) and are allowed relief for the period of residence + last 12 months.