Will I have tp pay tax?

[joe]

Hello.

Can anyone help me with this question?

I am going to university in September and renting my house out to a couple of friends of mine while I am away for three years.

Will I have to pay any sort of tax? I am not renting my house out for profit, I am just renting it out to cover the mortgage.

Any help would be greatly appreciated.

Many Thanks
Joe.

[Tax Accountant]

Is this house your only home? Is it being used as your residence? Will you be renting a property for yourself to live in when you go to the Uni? Will you be using your current home during vacations etc?

If the answer to all the above is YES:

(1) You should nominate your current home as your MAIN residence (as against the uni residence) for CGT purposes. Such a nomination needs to be made within 2 years of moving into your Uni residence. This preserves the PPR exemption for your home for if and when you come to sell it in due course even if you don't live there fulltime.

(2) You are allowed upto £4,500 (could be £4,250) 'rent a room relief' pae tax year. If your rental income is more than this, you could calculate the profit in the normal way, ie rents less mortgage interest and other allowable expenses etc. Any excess is redused by your annual personal allowances if you don't have any other income. All in all, it seems that you will not have any income tax liability.