Rental dilemma

Person A resides in Property 1 - main residence. Decides he needs a bigger property so remortgages property 1 to purchase property 2. He then moves into property 2 as his main residence.

He then rents out property 1.

Dilemma is, is the mortgage interest on the re-mortgage allowable against the rental income for property 1, even though it was used solely to purchase his new main residence?

Can anyone help?
Danny Mehta

Comments
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Even better than that...

Woodsman |

IR150 paragraphs Wholly & exclusively!

CrowtherP |
CrowtherP's picture

Scorer v Olin Energy

AnonymousUser |

According to the Inland Revenue....

Anonymous |

yes but

Anonymous |

No

AnonymousUser |