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galwaydude

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Ham Slicer

Your tax credits won't change.

If fact there is no tax breaks you can avail of in this situation. You are not even entitled to claim tax relief at source on your mortgage as it is not your home.

RainyDay

Ham Slicer wrote:

You are not even entitled to claim tax relief at source on your mortgage as it is not your home.

Your rental income will be liable to tax, but you can deduct your full mortgage interest from your income along with any other costs incurrent in maintaining the property from your income to calculate your 'profit' which is then taxable. This mortgage interest relief is generally even more generous that the first-time-buyers relief, as there is no cap on the amount of interest you can claim.

However, there are other serious impacts of renting our your home that you need to consider. If you availed of the stamp duty exemption for residents when buying the property, you would be liable for a clawback on stamp duty once you rent it out. This could be a substantial amount. Also, when you come to finally sell the property, you will probably have some Capital Gains Tax liability. You'll also need to tell your insurance company that it's being rented out, otherwise your insurance will be invalid for that period.

RainyDay

galwaydude wrote:

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Did I say the wrong thing?

galwaydude

nope mate, just found my answer somehwre else as well. thanx anyways for the advice