A client who had been working abroad and letting out her main residence A (which was initially mortgage-free) eventually took out a new interest-only mortgage on it to buy a new property B. B was let for a year and then on her return to the UK, became her new residence whilst she continued to let A. Is the mortgage interest allowable against letting income on A?
Replies (1)
Please login or register to join the discussion.
Yes but only up to the value of the property when 'First Let'. The interest of that value is allowable as a deductible against the rental income. Regards Peter