11:51 AM, 30th April 2017, About 5 years ago 7
My conundrum is that we need to rent a new property so we plan to rent our existing personal property and then rent another property to live in.
I am sure many people are in the same situation.
however the question I have is around tax.
Lets say I rent my flat for £2,000 a month and the rent I need to pay on my new property is £2000 per month. I thought there would be no tax to pay but I understand I would have to pay 40% tax on the rent I receive from my current property because I am a higher rate tax payer.
Are there any ways you can offset the rents? I did consider setting up a company just to run the rent through and it would net out to 0 and would effectively be a zero sum game or arbitrage letting business.
Any thoughts as it seems a lot of people must have similar issues.
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