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Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
You are liable for tax on your UK rental income. However, you may make the following deductions [source, Which]:
'The most common types of expenses you can deduct are:
The expense should be incurred wholly and exclusively as a result of renting out your property.'
You cannot offset property rental losses against other income and vice versa..
That is as far as I can go at present. Perhaps you could elaborate further on your statement 'Can I offset the income received against my rents?' Rents add to your income, not reduce same.
I do hope that I have been of some assistance.
Many thanks for your response. During the two years I rented out my property and the rent I paid out as a tenant, I incurred a net loss of over £2000. Now I am having to pay HMRC a tax bill of over £1000. This is my issue.
When you say I can deduct the rates, do you mean the rates I am paying as a tenant?
No, the deductions of rates refers to council tax or its equivalent which might be business rates, sorry.
The rent you paid out as a tenant whilst you worked overses is not a tax deductible item. Should you try to claim it HMRC will, not unreasonably, retort that everybody has to live somewhere!
I am so sorry to have to rain on your parade. Benjamin Franklin once famously quipped that in life there are but two certainties, death and taxes. I regret that here is a classic example of his dictum.
Please be so kind as to rate me before you leave the Just Abswer site.
Just to clarify, I was not working overseas; I was working in Cheshire and my primary residence was in Northampton.
Does the argument still hold?