Hi Helen, I can't think there are any special dispensations against this so yes, if you are making a profit then tax will be payable and you won't be able to offset the cost of renting the flat. Of course if this was a permanent place of work I guess you would sell your original property and buy where you work?
Also watch out for capital gains on your property for periods when it was effectively a business. There are a set of rules around this as not all of the time thatt the property was rented will be classified in the same way. I don't have time to relay it at the moment but will try to get back on later unless someone else picks this up.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
the capital gains relief on main residence is worked out as : Gain on property * (period of occupation / period of ownership)
Normally for main residences that would come out as 100% tax relief.
Period of occupation is calculated as :
- Any period of actual occupation
- The last three years of ownership (unconditionally)
- Up the three years of absence for any reason
- Any period spent employed abroad
- Up to four years of absence while working elsewhere in the UK (employed or self employed)
- Up the four years spent self-employed abroad.
Hope that helps,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
