Possibly, it will depend on your circumstances and how much rent you’re planning to charge.
However, in April 2017 two new £1,000 allowances for property and trading income were introduced. If your income (before expenses) is less than the allowance, you don’t have to declare the income or pay tax on it.
If your income exceeds the £1,000 allowance, you have the choice to deduct the allowance or the actual expenses from your income when you’re calculating your profits.
The main exclusion is that neither of the new allowances apply to partnership income from carrying on a trade, profession or property business in partnership.
The new allowances have yet to be legislated but the government has confirmed that they will be included in the Second Finance Bill expected this Autumn and will be effective from April 2017 as announced.
If you'd like any help handling your tax affairs, please get in touch with your local TaxAssist Accountant who would be happy to help.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.