How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15874
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

Seven years ago I remortgaged my home in order to purchase

Customer Question

Seven years ago I remortgaged my home in order to purchase another property for my son who was at uni at the time.He continues to live at the property paying all bills related to the home.I have now retired on a low pension and am forced to either let out my property or sell.I need to know my tax liability should I let my home and what my legal tax position is if I move into the home purchased for my son.many thanks
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello and thank you for allowing me to assist you.
When you start renting out property, you must tell HM Revenue and Customs (HMRC) and you may have to pay tax. You must report income from property rental of more than £2,500 a year on a return. If less than that you can call (0300(###) ###-####Self Assessment Hotline number).
Expenses are things you need to spend money on in the day-to-day running of the property and can be deducted, like:
letting agents’ fees
legal fees for lets of a year or less, or for renewing a lease for less than 50 years
accountants’ fees
buildings and contents insurance
interest on property loans
maintenance and repairs to the property (but not improvements)
utility bills, like gas, water and electricity
rent, ground rent, service charges
Council Tax
services you pay for, like cleaning or gardening
other direct costs of letting the property, like phone calls, stationery and advertising
If you choose to sell you would be allowed to claim relief from Capital Gains Tax if you do not let it first. This would be under Private Residence Relief. You would be allowed to then change your Private Residence to your other property where your son lives.
f you live in - not just own - more than one property you can 'nominate' one as your main home. Write to HM Revenue & Customs (HMRC) to tell them which one you nominate as your main home. You must sign your nomination.