Query re trs when renting out house and buying another

Advicepls

Registered User
Messages
84
Hi there,

I am looking for some advice as I am totally clueless on this matter. I am looking at the prospect of renting out my current property and buying a new one. I am still receiving trs on my current residence and understand that I will lose this when it becomes a rental property. I am just wondering if I will qualify for it on the new house, and if so at what rate, say if i bought this year or next?

Any advice greatly apprecaited.
 
Many thanks for your response. I am just unsure where I stand considering I will have a rental property aswell. I will not be claiming trs on that property so if I buy another by end of this year can I claim trs for that one?
 
The rental property is irrelevant.

TRS is being phased out and it is different depending on when you were a first time buyer and how long you have owned your PPR.

So again

When did you buy your current house and was it your first house ?
 
I bought my home in 07. I had an apartment before that which I bought and sold in 06. I am currently in receipt of the 30% trs as I bought in the boom.
 
I am just unsure where I stand considering I will have a rental property as well.

Once a property ceases to be your home you cannot claim TRS. You can instead deduct 75% of the mortgage interest from the rent, a lot higher tax allowance than TRS. Make sure you know what you are getting into by renting. It's getting to be a very costly business.
 
Back
Top