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Sam Pathak
Sam Pathak, Mr S Pathak MBA FCCA CTA
Category: UK Tax
Satisfied Customers: 461
Experience:  Tax Consultant & Freelance Lecturer over 9 years experience
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hi, i rent out my my own house for say 1000 pounds per month

Resolved Question:

hi, i rent out my my own house for say 1000 pounds per month and want to rent a house to live in nearer my place of employment for say 500 pounds.in effect i have a profit of 5oo pounds per month. what section of my tax form does this come under and can i claim against the 500 pounds i spend on renting to live in.
Submitted: 11 months ago.
Category: UK Tax
Expert:  Sam Pathak replied 11 months ago.

Hello,

Thank you for your question.

Unfortunately, if you do that, you can't deduct/claim that £500 you pay anywhere, as this will not be allowable in most cases.

And, you will have to report all £1,000 as your gross rental income, subject to any other expenses like mortgage interest, repairs etc.

I know this is not probably a good news for you, and not necessarily a fair thing, but this is the fact.

Tax office would consider this as - you are moving to a different place for your own comfort/convenience, albeit you are moving near by your work place, and you will still perform your duties of employment whether you live in one place or the other.

So, the conclusion is - you are unlikely to be allowed to deduct that £500 that you pay as a rent for you to live in near by your work place.

I trust the above clarifies.

Best regards
Sam Pathak
Customer: replied 11 months ago.

WHEN YOU SAY I CAN CLAIM MY MORTGAGE INTEREST BACK DOES THAT MEAN I CAN CLAIM ALL MY MORTGAGE PAYMENT AS IT IS INTEREST ONLY.THANKS DAVE

Expert:  Sam Pathak replied 11 months ago.

Dear XXXXX

Thank you for your response.

If it is 'interest only' mortgage, yes, all mortgage payments will be interest only, so all allowable, where you rent out the whole house.

I trust the above helps.

Best regards
Sam Pathak
Sam Pathak, Mr S Pathak MBA FCCA CTA
Category: UK Tax
Satisfied Customers: 461
Experience: Tax Consultant & Freelance Lecturer over 9 years experience
Sam Pathak and other UK Tax Specialists are ready to help you

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