I'm a landlord and a tenant. Can I deduct my rent from my taxes?

Landlord Discussion
1

Hi,

I’m a new landlord. I have let my mortgaged property because I needed to relocate and didn’t want to sell, and moved into a let property myself.

Can I declare the rent I’m paying as as cost of letting my property and get it deducted?

Many thanks

2

Er no .

What made you think you could ?

3

Nice try Let us know if you get it

1 Like
4

No, but you should declare the mortgage interest charge for the property you are letting out. As long as you are a basic rate tax payer, this when adjusted in your tax return, allows offset against your rental income

5

Have you had to inform your mortgage company that you are now letting the property? They will probably need to know.

6

I was just asking. Forgive me for being clueless. Annectodally I’ve heard from someone (friend of a colleague etc.) who says he doesn’t have to pay taxes in this case, was assuming he must be able to deduct. So just trying to verify.

It just feels wrong as I’m not making a profit. The rent I’m paying is a lot more than my rental income.

@ Karl11
Yes I have conset to let.

7

We have lots of up to date articles on tax and finance which might be helpful for you (and any other new landlords out there!). You can view them here:

We have a specific one related to tax on rental income here:

Have a read through all the articles, hopefully they sets things straight and give you a few options moving forward.

Thanks for posting!

8

You really should not be clueless. What you are doing is high risk and you should know the legalities involved.

You must report your income on a Self Assessment tax return if it’s:

  • £2,500 to £9,999 after allowable expenses
  • £10,000 or more before allowable expenses
9

If the new rented home is required for a business purpose, it may be tax dedutable (my son was advised by his accountant that a proportion could be offset) but this would be against other income, not the rental. You’d need proper advice on how much to offset

10

To add to my previous comment, in my sons case he works from home.

Regards mortgage relief, it also applies to higher rate tax payers but it is in the form of a tax credit restricted to 20%

11

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