As the title suggests, what are the tax implications of renting out the spare bedroom in my PPOR?
I assume:
Are those assumptions correct and are there any others I need to look out for?
Is there some kind of standard process I should follow or a template legal document I can use to legitimise such an arrangement?
Finally would insurance be necessary?
Thanks in advance.
I assume:
- Rental income taxed at my marginal rate
- Partial deductions for home repairs (e.g. to replace faulty hot water system I might get deductions on 50% of overall cost)
Are those assumptions correct and are there any others I need to look out for?
Is there some kind of standard process I should follow or a template legal document I can use to legitimise such an arrangement?
Finally would insurance be necessary?
Thanks in advance.