Becoming landlords for the first time this summer - tax advice

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    Becoming landlords for the first time this summer - tax advice

    This summer, probably July 2018, we intend to rent out our three bedroom home and move a few miles down the road to the next town. We will rent a flat or house ourselves. We want to be within the catchment area of a better state school for our child than what is on offer where we currenty live. We may be able to move back to our own home again a few years into the future. So we’re not in a buy to let situation - becoming landlords and renting ourselves.
    We have a flexible offset mortgage with a balance hovering just above zero but we can withdraw money at any time and start paying interest again or indeed pay off the mortgage completely and be done with it. Currently the mortgage is in my name only (the husband), I am a higher tax rate payer, my wife is a homemaker with an income of less than £2,000 per annum. I’m happy to change the mortgage so the house is in joint names. We want to use the income from renting out our home to help pay the rent we will have to pay ourselves. Could anyone advise the most tax efficient way to go about doing this?

    #2
    Hi, to split income/expenditure understand you both need to be on the deeds. However current mortgage provider may not allow this, also you will need permission to let from them, which they might not give with your current product.
    Best to give them a call, and discuss options with them.

    Comment


      #3
      or pay it off or take out a BTL mortgage on it in joint names, as tenants in common, then utilise your wifes tax allowance to offset the interest ?

      Comment


        #4
        You need to sit down with an accountant / tax expert and talk through the options.
        The alternative is to do a lot of research and planning - it isn't something to be taken in lightly.

        Being a landlord is running a business, and letting your own home is one of the more stressful ways to go.
        Tenants won't treat your property as you would, and it's very difficult to keep focussed on the business aspect (particularly if you intend to move back in later).

        And check our ground one of section 8 notices.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment

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