If I were to let a property, for £600 per month, and there was a mortgage on it for roughly the same amount, would tax be payable? is the rent classed as taxable income?
Thanks.
If I've got this right, the rent is classed as taxable income, but the interest part of the mortgage repayment is tax deductible. Also any repairs that you do to the property are as well. It would be worth talking to an accountant. Good luck with it.
As SeaJayPea indicates, expenses can be deducted from the income (when calculating the tax liability) as long as they're not 'of a capital nature'. So the interest element of the mortgage payments is deductible, but not the capital part:
http://www.landlordzo...on-of-property-income
SeaJayPea. As I understand it, repairs to the structure are not tax deductable as the could be classed as improvements.
They would however be deductable against Capital Gains Tax if the property were ever sold.