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Renting a house, what tax will I have to pay.

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  • 23-09-2009 10:56am
    #1
    Emmi
    Closed Accounts Posts: 28 ✭


    I am moving to the UK early next year to live. I have a house here, was a first time buyer. I was going to hold out until the market got a bit better to sell but as I will be taking a cut in wages when I move over, have now decided to rent it. The amount I will be charging in rent will probably just cover half of my mortgage so I will not be making a profit. Do I still have to pay tax here as I will not be working or paying any other taxes. I am planning on selling the house as soon as the market gets a little bit better.


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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    No you wont have to pay tax directly but you will be taxed on your rental income.

    The reason for this is that your tennant will have to withold 20% of the rent to pay direct to the revenue.

    So if your charging 1k a month you will get 800 and the tennant should send the other 200 to the revenue. If the tennant pays you the 1000 and isnt aware of thier obligstions I would suggest you keep the 20% a side just incase as this could come back to bite you in the ass.

    Apart from that though there are other possible implications depending on how long you own the house etc.

    1. You must pay the 200 euro property tax. (This is for all housed you own that are not resident in despite you only owning 1 house)

    2. You will lose your TRS if you still get this

    3. If you own the house less than 5 years your libel for stamp duty.

    Im sure im forgetting other things that your libel for aswell


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