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Mortgage Interest - tax relief

The Independent (30 June) reported that a self-employed person could set their mortgage interest against their tax. They referred to guidance issued by HMRC for their Inspectors.
Id this a new development, or has this always been allowed, and just not publicised?
Les Howard

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By ACDWebb
14th Jul 2008 16:43

Just make sure
no room is set aside exclusively for business purposes and there should be no problem under CGT rules.

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By ACDWebb
30th Jun 2008 14:54

Just don't claim all of it
Look HERE and HERE for HMRC examples

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30th Jun 2008 14:25

Do it!
You have always been able to claim relief for mortgage interest if part of your house was used for business many accountants were too cautious to advise clients to do it. If you haven't claimed it previously you can go back 6 years with a claim although I would advise getting a competent accountant to advise properly.

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By ACDWebb
30th Jun 2008 12:39

It's a newspaper
I suspect you will find they have got hold of the wrong end of the stick - [EDIT] and indeed they have see HERE though more a mountain from a molehill i suppose.

It is to do with the HMRC guidance of a few months back re claims for use of home, tied in to the "don't set a room aside exclusively for business" advice against a proportionate loss of PPR relief.[/EDIT]

Depending on the amount of use of home for business purposes there might be a proportionate claim, and if you had financed business capital expenditure charged against your house then possibly, but it is unlikely to amount to all of your mortgage interest

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