Buy to let question.?
Answers:
I rent out a property and I base my tax on the following:-
Rent, less interest only mortgage, less mortgage life insurance, less buildings insurance, less rental agency fees, less maintenance costs. Whats left budget 18% as tax payable. You will have to submit a tax return stating all the income and outgoings and IR will calculate the tax for you if you wish. Keep all receipts/statements etc; as proof.
When you come to sell, you will pay capital gains on any profit, this is aprox 40% if you bought the property as a buy to let, however if this was your own home previously this rate is reduced depending upon the amount of time lived in/rented out.
Check out google for good websites on buy to let info.
Other answers:
Yes you will..but you can put costs (like improvements etc) against it. It's an income!
Yes you will..but you can put costs (like improvements etc) against it. It's an income!
if you live in the UK , yes.> you'll be able to off set some of your taxes be seeing an accountant a well worth while visit