Hi Donna, I have been doing long lets for a year now and havn't done the tax return yet ... but I met with my accountant before I started to ask a few questions. As I understand, expenses are deducted before tax.. as well as those you mentioned, interest on a mortgage can also be deducted. Tax is charged at whatever your normal income tax rate would be. You do not need to charge IGIC. I also believe that if you are renting to someone under the age of 35 you get a 40% reduction on your tax due ... but you would ned to check that.
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