Relief on rent paid against rent earned ?

ChewyLuey

Hi All

Scenario
Home Owner has a principle private residence, unmortgaged – property 1.
If owner rents out that property to tenants and takes a lease on another property – property 2 - in a different county (moving closer to work for example) is there any relief on the rental income earned on property 1 from the rent paid out on leased property 2 ? Or does the owner have to pay income tax at the appropriate rate on the full amount of money earned on property 1 (I know there are various reliefs like letting agents, PRTB registration etc etc but wondered more on the scenario mentioned above where an equivalent amount of money is being spent by the landlord of property 1 beings a tenant in property 2)?

cheers

Riverireland

If you are a paye earner you will pay tax on the rent received at what ever rate you are on. It applies whether you have a mortgage on the house or not. The rent paid out has no impact on this. Very unfair situation as if you only own one house but need to live elsewhere it makes it very expensive to do so.

ChewyLuey

This answers my question, Thanks RI.