I know there are some people who own a flat and let in the UK. How much taxes does one need to pay, if one doesn't have any other income in the UK and doesn't live in the UK? I am unable to find the information on the net, though I remember I saw it some time ago. I read somewhere that you will pay the same taxes as for income, and you don't need to pay taxes for incomes below £10,600. Then from £10,601 to £42,385 one pays 20%? Can someone confirm this? I know that the chancellor has recently changed some rules for buy to let, for example:
- now one can only claim 20% of mortgage payments, even if you tax band is 40% or 45% (before one could claim mortgage payments at the same band of 40-45%)
- also, before one could claim for "10% of the rental income each year to cover depreciation in the value of furnishings, including sofas and carpets (this does not include fittings such as kitchen units and bathroom suites)" but it seems that now this is no longer the case. You can only claim tax relief when you actually buy the furniture to replace the old one.
https://www.gov.uk/income-tax-rates/...and-allowances