Landlord tax

Curley

Hi all
I am hoping that some of you might be able to help me here.
Here's my story:
My husband and I both own a house each.
We are living in my husband's house at the moment.
We are thinking of renting out my property.
What i dont know is, what tax do landlords have to pay? do they pay 20% tax or is it the higher bracket based on my house earning per year?
rent prices are falling and I am wondering if it's worth the hassle financially to rent it out. The mortgage may not be covered at all times because of rent prices falling.
Can someone please give me a brief outline of how being a landlord actually works financially? I dont want to step into something and then regret it later.
I might be better off selling it than keeping it to rent.
The market will be slow to turn around again too.

many thanks in advance
kirsten

johnc2212

as a landlord your rental income will be assesed as schedule d case V, from this you can deduct letting expenses i.e. service charges, management charges, letting charges, mortgage interest @ 75% (if registered with the PRTB, the PRTB registration fee. You can also claim capital allowances on fixtures and fittings acquired for the property.

Income less deductions/allowances is then taxable and calculated by adding to your total income for the year. Its done on a self assessment basis by 31st Oct or 2 weeks later if online.

Any deficits are carried forward against rental income in the next tax year.

Mr. Incognito

There is a link in the stickies that outlines rental income and tax.

I really wish people would read the resources. This is the fifth thread this fortnight on the same topic

johnc2212

relax, not everyone is as proficient as you in negotiating the site. People want answers not lectures.

Mr. Incognito

Well John, if you had read the charter you would know that we are not running a free advice shop here.

I generally lock property threads as a rule so leaving it open is as generous as I'm getting today.

If you want to question mod functions start a thread in feedback. Consider this a warning.