Is my rent tax deductible

I have to rent a property to be able to rent my residential property. Is the rent I pay tax deductible?

Hello Due to poor market conditions, I had to rent out my flat and move into my parents. I gained permission from my mortgage lender as this was a repayment not a buy to let mortgage. I am trying to understand why I owe tax given the below example, and understand the rules around interest now not an allowable expense, but as you will see my example below how can this be fair ? I am not a business, and due to inflation and the inability to move to a buy to let, I was forced into a variable rate with the below example of my 2022 P&L. Is there any support anyone can offer as currently I am unable to pay the amounts I apparently owe? Profit £9,306 Allowable expenses (loss): £2,976 Mortgage interest: £9,262 Total loss: £12,238 Variable: - £2,932 (minus) I cannot fathom how my interest even at 20% relief can be acceptable compared to the significant loss I have already experienced. I am looking at another £1k of tax, and in total a loss of £4,000. Apologies for the rant, but just a person struggling financially and mentally. Thanks Josh

Hi Lookforthepositive Tubb,

You cannot deduct the cost of paying rent on the property you live in against the rental income from the let property as this is not wholly and exclusively for business purposes.
See: PIM2100 - Deductions: main types of expense: expenses for own home    

Thank you.

But it is an expense incurred to be able to rent out my residential property.

Not HMRC Admin but it isn't actually incurred to be able to rent the property. It is incurred to give you somewhere to live. This is why it isn't an allowable expense.

Hi Josh Hope
Thank you for your question.
You have advised that you understand how loan interest relief is now given.
As you know loan interest is now allowed as a 20% deduction against a customer’s overall tax liability.
It is no longer given as a deduction from the rental income.  
There is no other way the relief on loan interest can be given.
You can find further guidance at Tax relief for residential landlords: how it's worked out - GOV.UK (www.gov.uk).

Hi,

We can only refer you to the guidance that has already been given. This says that expenditure on a house, flat or other property that the landlord occupies himself or herself is not normally allowed as a deduction in computing rental business profits because it does not satisfy the "wholly and exclusively" rule. The rent that you pay on the property where you live is paid so you can live there and not in connection with the property that you rent out.

Thank you.

Looking for some help with rent being offset from my railway agency, via Siemens. I'm about to start work in Devon and Cornwall, it's very expensive for rent down there, so, Siemens have agreed to pay the testing staff an additional £15 per hour, till October, and then a smaller amount until the contract ends in March 2024. As this amount will be added to our wages, but will be for Lodgings, how can we separate this? and what are the tax implications? as we can only claim back, £20 out of every hundred for accommodation although it's temporary stay, So we will be having higher wages, but paying for a place to live, and then have to pay tax on that. Can i ask my Railway Agency to put on my payslip that the extra £15 is for uplift for accommodation or not, as i think i will be paying tax on money that i haven't earned. I'd appreciate any help, best regards

Hi drake01 Williams,


I would advise you and your employer to look at Expenses and benefits: accommodation.
If it isn't exempt then the amount added to the payroll will most likely be taxable.
I would also suggest if you have any further questions you could get your employer to contact the Employers Helpline on 0300 200 3200.

Thank you.