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Renting my house due to posting overseas. Do I have to pay tax on it?

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easyeaze

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Does anybody know if you have to pay tax on renting a private house. I'm sure I read somewhere that you are exempt from paying tax when you have been posted overseas due to military commitments? If anyone can provide further information on this it would be appreciated.
 
I think you will find that serving overseas is still counted as being a uk resident and therefore tax is paid. I know when I was in Cyprus the BFPO address kept us taxable. if you play the numbers right you will pay hardly any tax anyway.

from the rent per month you can deduct the following:

Agents Fees
Mortgage
Any insurances on the property (buildings and life insurance for endowment if your lucky)
Contract fees including inventory (don't claim it twice from the RAF though......)
Repairs but not improvements but it is amazing how many things fail like radiators or bathroom suites
Fair wear and tear to fixtures and fittings

You only pay tax at standard rate on any profit. If you are near your higher rate bracket let the wife claim it!

Where are you going?
 
Thanks for the reply, I thought as much, just a false hope I guess. I may have been confusing it with council tax.

I'll be moving to Brunssum next year.
 
Spent three glorious years at UKDSU AFCENT 1990 -93. Put on four stone and gained a (future Ex) wife whilst I was there.

Enjoy it mate.
 
make sure you fill in a tax declaration form stating you will still be paying tax through the UK tax system. I didn`t know about it and the letting agent didn`t tell me about it and I got stung with a 20% tax bill as an overseas landlord!
 
carefull

carefull

chief remf said:
I think you will find that serving overseas is still counted as being a uk resident and therefore tax is paid. I know when I was in Cyprus the BFPO address kept us taxable. if you play the numbers right you will pay hardly any tax anyway.

from the rent per month you can deduct the following:

Agents Fees
Mortgage
Any insurances on the property (buildings and life insurance for endowment if your lucky)
Contract fees including inventory (don't claim it twice from the RAF though......)
Repairs but not improvements but it is amazing how many things fail like radiators or bathroom suites
Fair wear and tear to fixtures and fittings

You only pay tax at standard rate on any profit. If you are near your higher rate bracket let the wife claim it!

Where are you going?
Click to expand...
Only offset against mortgage Interest. not the repayment part.

NR1 is the form I think to stop the agent taking the TAX off at source but you will need to fill in your own tax return then.
 
Do everything through a reputable letting agent. Also get a Tax Advisor to help with the yearly return, they know how to squeeze everything to reduce the payments.
 
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