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Are Arrears Insurance Payouts Taxable?

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Author Topic: Are Arrears Insurance Payouts Taxable?  (Read 686 times)
Newbie
Posts: 2

I like property

« on: December 06, 2017, 04:30:44 PM »

Hello,

I am in the unfortunate position of having a tenant who won't pay his rent. I have insurance against rent arrears though, so my losses are covered by my insurance company while I go through the legal process to remove the tenant.

I declare rental income to HMRC each year but is my insurance payout taxable as income in the same way?

Not sure about this, does anyone else know?
Global Moderator
Sr. Member
Posts: 357

I like poetry

« Reply #1 on: December 06, 2017, 06:42:51 PM »

I'd have thought it would be taxable. After all, it's still the same income that you'd be getting anyway. It's just that it's the insurer/warranty provider paying it, rather than your tenant.
Newbie
Posts: 2

I like property

« Reply #2 on: December 08, 2017, 01:09:07 PM »

OK, thanks. I'll assume it is taxable.
Cheers
Global Moderator
Hero Member
Posts: 511

Permanently stressed out

« Reply #3 on: December 14, 2017, 04:10:41 PM »

No never do that. >:(
Never assume you pay tax and pay it - that's not sensible.
Do some research and find out.
Call the tax office if you are really stuck (although I have been given incorrect information by them on several occasions).

For your question see PIM1056
It is taxable


Newbie
Posts: 30

I like property

« Reply #4 on: December 14, 2017, 05:41:57 PM »

No never do that. >:(
Never assume you pay tax and pay it - that's not sensible.
Do some research and find out.
Call the tax office if you are really stuck (although I have been given incorrect information by them on several occasions).

For your question see PIM1056
It is taxable

Excellent advice, I have had to learn the hard way myself in the past.

-Jeff
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