I’d like to let out my home in London for moving out to the country where I’d like to rent a bigger house.
Will I have to pay tax on the rental income without claiming the cost of the new rent?
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It only takes a minute to sign up.Sign up to join this community
Here is a page that gives an overview on letting homes in the UK.
Your rental income counts as income and you have to pay taxes on it, and possibly National Insurance. However you can deduct some of the expenses you incur as part of letting the property, and pay tax only on the profit.
Quoting the above:
Allowable expenses are things you need to spend money on in the day-to-day running of the property, like:
There is also an allowance of a thousand pounds on which you don't have to pay tax.
You cannot deduct the rent you are paying for where you live. You couldn't deduct it if you didn't have the rental property and you can't deduct it when you do.