Tax offset possible?

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    Tax offset possible?

    If I get £1700pcm rental income from letting out a previous main residence (Property 1) and the mortgage interest is £2000 pcm, I won't have any tax liabilty for that rental income as I am operating at a loss of £300 pcm. But if I then, under the Rent-A-Room Scheme, get 2 lodgers to share my new main residence (Property 2) , who pay me a total of £600pcm rent, can the £300pcm loss from Property 1 be offset against the tax liability gained on Property 2?

    Annie B

    #2
    This applies to you.
    http://www.hmrc.gov.uk/manuals/pimmanual/pim4001.htm
    Regards Peter

    Comment


      #3
      This applies to you
      Be aware you have a choice of how to tax profits under the rent a room scheme. You need to click on further in the link above.

      Comment


        #4
        I hope the OP would click on the next page button and realise that the Rent a Room scheme is not per room ( £4250 ) it is the max allowance in a property with a owner/occupier. Regards Peter

        Comment


          #5
          Thank you for your replies and the appropriate links.

          It does at first sight appear that I can offset losses from the rest of the property business against any tax liability obtained by letting rooms in my home. I will read the information very carefully.

          With kind regards

          Annie B

          Comment

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