Hi everyone!
I’m so glad I found this platform, everything online is so confusing and scary and I hope I can get some advice from here instead..
My husband and I are moving to the USA in October this year, and we need to rend out our home in order to cover its costs.
It seems like in 2021/2022 we are no longer allowed to deduct mortgage interest from our taxable income - which is really really problematic…
I would like to understand how much tax we need to pay on our home is we make £2.1k per month in rent, and have £2.5k of costs per month, of which 1.1k is mortgage interest, 0.9k is equity mortgage payment and the balance of 0.5k is service charge/ground rent/management fee.
Please also note that we are both moving back to US employment and will no longer be paying income tax in the UK, but will be fully employed and paying tax in the USA ( roughly $160k combined).
Since we will be getting revenue from our home in the uk we will have to make a self assessment tax return, however the tax rate is mainly based on our income tax rate, would this then be £0 per year in the UK? Or do we need to state our American employment income? Would we qualify for the first £11k tax free?
If we have to base this tax return on our American income then we’re basically totally screwed and won’t be able to leave without selling the house as we’ll make an out of pocket loss of £8/£10k per year!
Apologies for the novel I’m just trying to cover all grounds..
Thanks so much in advance - any help is really appreciated.
Thanks,
Coralie
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