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thanks for your reply. Yes the property was his main residence before we bought our other house together. With regards ***** ***** accounting charges, is there a cap on what these charges can be (ie how much can be charged as an expense) or is it defined as 'reasonable expenses'?
To further complicate the situation, we have no mortgage on the rental property, but we do have one on our own home. I'm basically trying to ascertain what would be the most tax efficient way to organise ourselves on the basis we have 2 properties, one rental with no mortgage which used to be my husbands main residence, one main residence, mortgaged, me with no income as a student and my husband a higher rate tax payer!
Thanks - do you think in that case it is worth looking at transferring the mortgage to the property we rent out so the mortgage interest can offset the tax liability?
Thanks, ***** ***** just clarify your last point about interest being paid on a amount equivalent to the capital value, what do you mean here? Can't the total mortgage interest be used to offset the tax? (so if say the property has a £200k mortgage and its valued at £500k, we're paying interest on £200k that can be offset)?
I'll rate the response now
Just going back to my original question and thinking about it some more, can we declare the rental income jointly since i have joint ownership via marriage? (ie declare 50% each)
ah ok i see, thanks!