Moving in with your partner and Taxes

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


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


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

Joanne Guest

Author Bio: I'm an ACCA qualified Accountant providing Accountancy and Bookkeeping services in Witney and Carterton. I'm always happy for a chat to discuss your accountancy needs and to determine whether Tetbury is a good match for your business.