Rental dilemma

Posted by AccountingWEB PM | on Fri, 03/09/2004 - 12:23 1924 6 comments | report

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 | Mon, 06/09/2004 - 17:44

IR150 paragraphs Wholly & exclusively!

CrowtherP | Mon, 06/09/2004 - 11:09

Scorer v Olin Energy

AnonymousUser | Mon, 06/09/2004 - 11:45

According to the Inland Revenue....

Anonymous | Fri, 03/09/2004 - 14:14

yes but

Anonymous | Fri, 03/09/2004 - 13:37

No

AnonymousUser | Fri, 03/09/2004 - 13:19