Income Tax On Rent Of Property In Uk

[classic-chassis]

What is the amount of money one is allowed to earn berfore tax is deducted form property owend in the UK.

For example rent=580 pound - 10% agency fee = 522 pound / 4 =130 x 52 weeks of the year =6789 pounds gross.

there are other anual fees i presume i can off sent on this amount such as annual Corgi gas inspection and service. preperation of yearly lease from agency.

I have no other income in the UK at all, do i have to pay icome tax?

[Nibor1945]

Hi.

Although I have been declared "Non resident for tax purposes" in the UK, The tax office explained that "any" income I received that originated from the UK would be taxable at the current UK tax rates.

Nibor.

[siam-i-am]

Hi.

Although I have been declared "Non resident for tax purposes" in the UK, The tax office explained that "any" income I received that originated from the UK would be taxable at the current UK tax rates.

Nibor.

True after overheads i.e. agents fees,maintenance etc, the rate is 22% on all unearned income i.e. rental of properties.

[classic-chassis]

Hi.

Although I have been declared "Non resident for tax purposes" in the UK, The tax office explained that "any" income I received that originated from the UK would be taxable at the current UK tax rates.

Nibor.

True after overheads i.e. agents fees,maintenance etc, the rate is 22% on all unearned income i.e. rental of properties.

And you are allowed to earn 5225 before you get taxed after that it's 10% upto 2230 pounds of profit, then the next bracket is, as saim-i-am said 22%.

http://en.wikipedia.org/wiki/Taxation_in_the_United_Kingdom

In addition if you annual income is less than 15,000 pounds you don't need to show a break down of expencise on your self assesment form, the interest on the mortgage is also tax deductable so if your mortgage is anything more than 15 years old or you own outright, I don't think you need to worry because most of your mortgage payments are interest. I looking on lots of web sites for this info, because i need it.

Edited March 14, 2008 by classic-chassis

[briley]

From 5th April 2008 the 10% band disappears and the bottom tax rate drops to 20%.

If non-resident then the agent or the tenant (if you have rent paid direct to you) is supposed to withhold the tax from the rent. Unless you get a letter from the tax people saying they can pay you the full amount. The tax people will give you this letter provided your tax affairs are in order.

PS - if the house is furnished you can either claim 10% of the total rent paid as 'wear and tear' or claim for actual replacement cost of furnishing. The 10% route is the easiest.

On the figures you quoted you probably won't have to pay any tax.

Edited March 14, 2008 by briley