Rental Income

[blackledgeb]

Hi all,

Could someone please tell me how rental income is calculated for meeting the financial requirement?

The Financial Req appendix mentions that management fees may be ignored but what about mortgage payments/mortgage interest and maintenance?

Our immigration advisor, incredibly, could not provide a concrete answer on this!

Thanks in advance!

[chokaschoza]

Hi,

If you own a property which is on rent and you get £6000 a year.This will be your income from rent and can count towards Financial requirement. However, anything above £2500 a year after deducting allowable expenses needs to be declared to HMRC and therefore taxable.

The rate of tax will depend on which Tax bracket your salary fall under. Mortgage interest and maintenance/refurbishment charges are tax deductible but they only count towards how much tax you have to pay. Financial requirement I believe will be satisfied by the Rental income itself.

[blackledgeb]

Thanks for your reply. Taxable income allows for all kinds of deductions such as interest, management fees and insurance but that seems to be a different issue.