Question:
I am thinking of letting out my house as a self-catering holiday property and moving to the country. What tax would I have to pay on the income? Can I claim back any work needing doing to the property against the tax?
Arthur Weller replies:
The simple answer is that income tax would apply to your net rental income. If the conditions of your scenario comply with the furnished holiday lettings rules (see www.gov.uk/government/uploads/system/uploads/attachment_data/file/323821/hs253.pdf), then slightly different income tax rules apply. If the property is currently in a fit state to rent out, and any refurbishment work you do is not an improvement (see www.hmrc.gov.uk/manuals/pimmanual/PIM2020.htm), then the cost can be offset against the rental income.
