If you re mortgage a rental property, and use the advance as a deposit on another house, can you offset the whole interest against the original rental properties income? Even though the remortgage was for a deposit on another house.
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Depends....
Providing the new house is a rental property as well then yes, though I would perhaps apportion the interest charge between the two.
If the original house did not have a mortgage (or you are increasing the existing loan) and you buy a house that isnt a rental property, then the 'new' interest cant be set against the original income.
I agree with MikeCahill1965. If it is a loan to buy a rental property then the interest can be set off against the rental income.
Depends what loan you have against the rental property
and the value of the property when it was first let.
If you have a property valued when first let ay £200k against which there is already a loan of £50k and you draw £50k as the deposit on another property, be it let or not, then the interest on the new £50k will be allowable.
You have drawn down free capital from the capital account of the property business and replaced that with a loan.