Tax Compliance Cert- Tax on Rental Proprty

M

merlot

Guest
My Partner and I Invested in a second in property in the boom of 2006, we have been fortunate enough to have it rented until December of last year. The mortgage has been always been interest only.
We have managed to pay the interest part of the mortgage ( which is due for review next month) up until last month .
We are now a month in arears with that mortgage, and just about keeping our heads above water with other expenses .
The property has been deemed siutable for the RAS scheme so there is light at the end of the tunnel, but now to the problem. .
We have never done tax returns on our rental income , we weren't making a profit and it just got put on the long finger.
We have been asked for a tax compliance cert by the County Council and just don't know where to start.

I would be grateful for any advice, I know we should have dealt with this but we are we are.
Thanks to all
 
Did you have the property registered with the PRTB?
If not, you may have a significant tax bill to pay. The mortgage interest can only be offset against the rent if you've registered, otherwise you would owe tax at your highest rate on the majority of the rent received.
 
The property was registered in 2008 , but not all the tenancies were registered since then.
Beginning to think I will need to get a tax accountant.
 
You must log in or register to reply here.
Back
Top