loan interest relief

loan interest relief

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Client is now letting out a property at which he used to reside. Can he claim full interest relief on the mortgage, even though the loan initially taken out was not for business purpose?

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By help4u
23rd May 2013 19:01

loan interest relief

He should be able to claim the mortgage interest as an expense as it is still payable and relates to the property.

Ideally the client should get consent to let or change the mortgage to a buy to let mortgage so that he is protected just in case from breaching the lenders mortgage conditions.

The client could have taken out a bigger loan before the property was let to increase his outgoings and reduce his tax bills. The extra advance could even be used to but another Buy to let property. 

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By Fred Smith
23rd May 2013 20:56

The allowable amount of the loan used to calculate interest can equal the value of the property at the point of starting the rental business so can be increased after the start if there is equity available.

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By help4u
18th Nov 2013 15:51

the allowable amount of the

Yes I agree.

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