Will I pay income tax if I rent my house out while living abroad?

7
Found 24th Nov 2011
Hi, just picking your brains as the tax website is too complicated.
Anyway, I have a house in the UK that I am thinking of renting out at around £400 per month to my partners grandson as my partner is retiring next year and we want to move abroad. What I want to know is do I pay income tax on this rent or if I charge under a certain amount, would I be exempt?

Any info on what I need to do, please feel free. More knowledge i have the better. My partners grandson works part time and at college his partner is having a baby and therefore get help now with their rent. Thanks
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You are legally obliged to pay tax on income (including rent). You do not have to pay tax on the interest portion of any mortgage which is on the house. You can also get tax relief on certain expenses relating to the rental such as landlord insurance. However, if you are renting to a relative without advertising/going through an estate agent HMRC may be rather unlikely to find out.
If you rent the whole house then you have to pay tax. If you only rent a room then you don't up to just over 4K.
Original Poster
I won't have an income whilst living abroad and will be charging £395 per month, so will this income qualify towards my taxable income? So if it does, surely I won't pay tax.
aliandk

I won't have an income whilst living abroad and will be charging £395 per … I won't have an income whilst living abroad and will be charging £395 per month, so will this income qualify towards my taxable income? So if it does, surely I won't pay tax.



You can have your taxable allowance before paying tax. But you must include any savings income as well any other income at all.
mutley1

If you rent the whole house then you have to pay tax. If you only rent a … If you rent the whole house then you have to pay tax. If you only rent a room then you don't up to just over 4K.


This only applies if you are living in the house at the same time.
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