Moving in with your partner – what are the tax implications..?
Home is a very important word as generally speaking there are no taxes payable on your “home” – what the tax man calls your principal private residence
Income..
If you rent out your old “home” after the move then this “rental income” is taxable and the tax man will expect a tax return to declare the income
Various costs are allowable against this income such as insurances and repairs etc
Mortgage interest is allowable too but the process is a little more complicated
Capital..
If you sell your old “home” within 9 months then generally there are no taxes to pay
If it takes longer to sell your old “home” there may be a taxable gain but it will be time apportioned for the period beyond 9 months
Everyone has £12300 of taxable gains they can make each year without paying taxes
See also next blog on reporting and paying taxes on capital gains within 30 days
VAT on Eating Out & Accommodation
VAT on hospitality and tourism was reduced from 20% to 5% in July 2020 to help the hospitality industry survive
This applies to food and non-alcoholic drinks consumed both on and off the premises and also covers lots of attractions and even season tickets
From the 1st October 2021, the rate of VAT will increase to 12.5% for 6 months before increasing back to the normal 20% in April 2022
It will be interesting to see if this will put the cost of eating out up or whether it just be absorbed by the industry
