Tax return on a rented house

L

loadsofmoney

Guest
If a landlord buys a house , say cost of 300K and leases this out for 8K per year. The interest repayment on this would be approx 9K.
So taking the 9K from the rent ( 8K ) , does this mean that the landlord is not liable for tax on his rental income ?
Or is there a cap on the Interest that a landlord is allowed deduct from his rental income ??

The landlord would be at a loss of 1K, is he allowed carry this over to a second rented property and deduct this from his rental income on the second property ?

Thanks for any replies to this.....
 
does this mean that the landlord is not liable for tax on his rental income ?
Click to expand...

Yes, there is no tax payable as there is a loss for the year.

This loss can be offset against other rental income and carried forward if there is still a surplus.

I'm sure you're aware that there may be other expenses that can be claimed.

I would recommend getting an accountant to do your tax return for the first year and maybe take it from there if you think you are able.

Best of luck
 
how you come to that sum

i was only giving ball park figures. basically if the Interest is more than the rent. the rent is tax free. that was my question.
 
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