Income tax on rental income

[laurag]

Hi, I currently own 2 properties, one which I live in and the 2nd which is let out. My main query is that, obviously minus costs of mainitaing and running the let, my mortgage exceeds income through the property. Would I be entitled to some kind of tax relief due to this????

[dazalock]

NO, you should do a self assessment, any loss will just build up and you can carry the loss forward, you can then deduct this against any profit in the future or against CGT when you sell.

[Yardleystar]

You are already receiving tax relief on the interest payment of the mortgage as a business expense you can offset against rents

The above posting is correct about caryring forward losses

[Tax Accountant]

You are referring to two properties, one is used as residence and the other is let. You cannot claim any relief relating to the mortgage interest or other costs relating to the property you are using for yourself.

You can only claim the mortgage interest and other running expenses relating to the let property against the rental income. If these exceeds the rental income, you can only carry forward the excess against the first available rental income profit in later years.