Tax return on a rented house

L

loadsofmoney

Guest
If a landlord buys a house , say cost of 300K and leases this out for 8K per year. The interest repayment on this would be approx 9K.
So taking the 9K from the rent ( 8K ) , does this mean that the landlord is not liable for tax on his rental income ?
Or is there a cap on the Interest that a landlord is allowed deduct from his rental income ??

The landlord would be at a loss of 1K, is he allowed carry this over to a second rented property and deduct this from his rental income on the second property ?

Thanks for any replies to this.....
 
H

Ham Slicer

Guest
does this mean that the landlord is not liable for tax on his rental income ?
Yes, there is no tax payable as there is a loss for the year.

This loss can be offset against other rental income and carried forward if there is still a surplus.

I'm sure you're aware that there may be other expenses that can be claimed.

I would recommend getting an accountant to do your tax return for the first year and maybe take it from there if you think you are able.

Best of luck
 
L

loadsofmoney

Guest
how you come to that sum

i was only giving ball park figures. basically if the Interest is more than the rent. the rent is tax free. that was my question.
 
Top