My sister has her own house but is now planning on moving in with her boyfriend. She is going to rent out her place and went to the tax office to ask for some advice but they weren't very helpful.
Basically she wants to know are her mortgage repayments tax deductible.
So for example. Say that her mortgage repayments are 800 a month and she rents the property out for 900 a month. Does she have to pay tax on the entire 900 or just the difference (100)?
Also if she buys a new cooker and other household appliances can she claim tax relief on them?
Edit: My sister currently earns enough in her job so that she falls into the higher tax bracket. Does this mean that any tax paid on the rental income will be at the higher rate of tax (41%)?
Basically she wants to know are her mortgage repayments tax deductible.
So for example. Say that her mortgage repayments are 800 a month and she rents the property out for 900 a month. Does she have to pay tax on the entire 900 or just the difference (100)?
Also if she buys a new cooker and other household appliances can she claim tax relief on them?
Edit: My sister currently earns enough in her job so that she falls into the higher tax bracket. Does this mean that any tax paid on the rental income will be at the higher rate of tax (41%)?