buying to rent or live in

M

molls

Guest
I am in the process of buying a house which is twenty mins from where I live now.Originally I was going to live there and rent a room but for various reasons I am now thinking of renting out the whole house and staying where I am now.
I'd really appreciate some info regarding the tax situation if I do this - will I automatically lose my mortgage interest relief and stamp duty? how much could I earn in rent befor I have to pay tax?
 
you will have to pay stamp duty if investment property.

you pay tas on every cent of rent, less certain allowances.
 
If you are a FTB renting the property, a stamp duty clawback at investors' rate is liable from the first day you let it out. You also have to register with the PRTB as a landlord. Interest on the mortgage can be deducted from rental income, subject to PRTB registration. Other deductions include management fees, repairs etc. Pre letting expenses are not allowed.

With the rent a room scheme you can earn approx 7620 tax free.
 
thanks for the replies.
Liteweight, can you tell me what PRTB is in full form.
also i wonder is it possible to claim a tax credit for renting elsewhere at the same time?
 
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