Mortgage Interest on Rental Property

Mortgage Interest on Rental Property

Didn't find your answer?

If you have a main residence you live in with a mortgage, and a rented property let out with no mortgage - is there anyway of offsetting the mortgage interest on the main home against the rental property for tax purposes? I`m sure I saw something on this but cannot locate original post???
Paul

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By ACDWebb
21st Sep 2005 23:07

Try these
https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=135898

https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=117597

https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=120636

Also look at Revenue manual BIM 45700 for additional information.

The last will be most help.

There have been more recent posts, but like you I do not seem to be able to come up with the requisite search string to track them down.

You cannot just offset but will have to carry out a refinance, borrow up to the value of the let property when you first let it (some say restrict this to 80% being effectively what a lender would have lent at the time). That is capital introduced to your letting business that you can withdraw from the business and use to repay the mortgage on the main residence.

The rate might be higher as the lender will probably look at it as buy-to-let rather than a private residence loan

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