A Question about what tax I will have to pay if I rent my house out

[BeattieBow]

Sorry I posted this on money matters too, but if any one knows the answer it would be much appreciated (sorry it's a bit dull!).

I wondered if I rent my house out what I can set off against the rent received when paying tax (if anything).

If I rent it out can I set the mortgage payment off against the rent?

if so, can I only set off the interest, or can I set off the whatever I choose to pay off the mortgage? So if the interest on the mortgage is say, £500, but I choose to pay £2000 off because I receive that in rent, what amount would I pay tax on - is it the £2000 rent received, £1500 because I can deduct £500 interest payment or zero because I can deduct the whole amount paid to the mortgage?

Thanks if you know the answer!

Think it's just interest only element - also there is some allowance for wear and tear. From memory hmrc site has a good guidance note on this

See here:

www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013435

and here:

www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10014027

You can set off the interest on the mortgage, plus maintenance costs. Not improvement costs though (I think) and definitely not any capital repayments on your mortgage.

and don't forget when you sell there could be capital gains tax to pay