Own your own home and rent it out?

Discussion in 'Finance, Property, Law' started by mudblood, Dec 28, 2006.

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  1. I have been warned by my Letting agent to look into the possibility of being completely rifled by the Inland Revenue.

    It seems my owned (mortgaged) home is not my primary residence and therefore attracts not only income tax on the income above the mortgage payments and maintenance, but also capital gains tax on the profit made on sale.

    My house was bought for my family to live in when I retire. I cannot be on the property ladder in any way being a transient. I am posted every two years. How can I keep buying my own home in the South of england!!!!!! Already my family have outgrown the modest property that I own, and I will have to sell to buy a bigger house. A 20% to 40% tax bill will negate the investement as deposit against the bigger property!!!!!!!!!

    Does anyone know the actual regulations? Am I barking up the wrong tree. We are being royally skiffed if this holds true. As it is the house I bought is the best I could afford and honestly isn't in the best of areas.

    Somebody, anybody, HELP?
  2. This topic has been doen somewhere else on the site, I just can't be bothered to find it at the moment - try the search facility.

    I think the bottom line is get yourself a tax advisdor who specialises in rented property. I did and the his costs (which were deductable) were far less than the money he saved me.
  3. Like many letting agents, yours is a twat.

    The issue of "primary residence" and capital gains tax only arises if you own two or more dwellings.

    Check your PMs