Thank you Sam. That's really helpful. Just to clarify on the Loan Interest and how this is offset against future taxable rental income, can you please clarify that my understanding of this part of your reply is as correct as follows:
So, even if the loan is paid off earlier than the full term, the interest accrued for the duration of the existence of the loan, including any final interest is still able to be offset against rental taxable income, but only if in the same financial year? So, if the loan was paid off say in December, the interest can be offset again taxable rental income up until 5th April 2015, but if it was paid off in or after 6th April 2015, then the previous year's interest accrued might not be able to be offset? Or doesn't it matter which FY it falls in? Also, I don't quite understand your last sentence. "then this would be the amount due for that tax year"? Can you reword or clarify for me please? Thank you very much. Regards Julie
Thank you for your detailed reply Sam. This is really useful before our meeting with the bank on Saturday am.
Last quickie. My boys have never filled out a self assessment tax return before. Is this something that is simple to do online via the HMRC website for rental income and claims against rental income, or too complicated to put on a form by a non-qualified tax expert? Would you recommend paying a few hundred quid each for their tax returns to include rental income and their other employment earnings, or is it reasonable to think, that with my help, this could be done themselves online? Thank you
Thanks very much Sam. I feel fully informed now and have marked "Excellent" in the feedback.