My partner and I are temporarily letting our home for 6 months. It is a residential NOT buy to let mortgage. We own the property jointly and are both basic rate tax payers. The tenancy will commence 29 Feb and end 29 Aug. Our prospective tenant has offered the entire rent upfront (incl. bills). That will mean receiving a lump sum in tax year 2019-20, but there will be deductible expenses incurred monthly for the duration of the tenancy (i.e. bills and mortgage payments) into the next tax year, 2020-21.
Can anyone explain the tax implications of this please?